The Canadian subsidiary of the China-based electric vehicle maker BYD reported four communications with federal officials about EV policies in July and August.

The company said in its filings it “wishes to engage the government on the development and implementation of the electric vehicle strategy.”

BYD is expected to sell its first passenger vehicles to Canadians late this year or early next, after Ottawa struck a deal to allow up to 49,000 of the vehicles to be sold annually in Canada.

The lobbying communications took place ahead of the government’s decision to walk back the previous Liberal government’s promise that by 2035, all new passenger vehicles sold in Canada would be non-emitting.

In mid-August the government announced plans to repeal the mandate and replace it with greenhouse gas emissions standards, with opportunity for public comment on the new regime until Oct. 29.

The federal government does, however, maintain an EV rebate program offering up to $5,000 to people who purchase an approved model of zero-emissions car.

BYD, a popular producer of electric vehicles worldwide, has been lobbying in Canada for nearly a decade, but it has never sold its passenger vehicles here.

It produces and sells its electric vehicles in China and across Europe and much of the rest of the world, and they tend to be significantly less expensive than typical zero-emissions vehicles.

One BYD car, called the Seagull, gained attention for its low price tag of C$11,000 in China. That had policymakers in Canada and the U.S., where EVs cost about $50,000 on average, fearing BYD cars could outcompete and decimate local car manufacturing industries if they entered the North American market.

In 2024, Ottawa imposed a 100 per cent tariff on the cars to protect local industries, reportedly leading the company to pause its plans to enter the Canadian passenger vehicle market that year.

But that was before U.S. President Donald Trump took office for the second time in early 2025 and waged a trade war that has led to significant disruptions and job losses in Canada’s carmaking sector.

As a result, Canadian officials have been trying to diversify international trading partners. Earlier this year, the Canadian government struck a deal with China to allow a limited number of the vehicles to be sold in Canada at a 6.1 per cent tariff rate, in exchange for that country lowering tariffs on Canadian products like canola.

According to reports, BYD is preparing its Canadian rollout for later this year, but "BYD vehicles made in China will not be eligible for an EV incentive.” Environment and Climate Change Canada spokesperson Cecelia Parsons told the IJF.

“Only EVs made in Canada or in countries with which Canada has existing or future free-trade agreements" are eligible for the program, she said.

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