Ottawa is seeking new partnerships in Japan as Chinese EVs enter Canada. Judy Trinh reports from a major trade mission in Tokyo. <\/p>\n
TOKYO, Japan – Industry Minister Melanie Joly said she has made it clear to four Chinese electric vehicle makers that getting more access to the Canadian market will require them to \u201cbuild where you sell.\u201d<\/p>\n
But as she courts Chinese EV manufacturers to build another lifeline for the domestic auto industry as it buckles under the uncertainty of the CUSMA review, Japanese auto manufacturers are voicing concerns about the federal government\u2019s embrace of their biggest regional competitor.<\/p>\n
This past week during a visit to China, Joly met with executives from BYD, Chery, Geely and Shanghai Launch Automotive Technology. The minister said the four companies want to eventually expand beyond the current quota of allowing 49,000 Chinese EVs into Canada this year. <\/p>\n
Earlier this year, during Carney\u2019s trip to Beijing, Canada agreed to allow up to 49,000 Chinese EVS under a reduced tariff of 6.1 per cent, in exchange for China lifting retaliatory tariffs on some Canadian agricultural products.<\/p>\n
Speaking to CTV News on the sidelines of a Team Canada trade mission to Japan, Joly insists strict conditions will be put on potential manufacturers.<\/p>\n
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Minister of Industry Melanie Joly speaks at the Canadian Association of Defence and Security Industries annual defence industry trade show CANSEC, in Ottawa, on Wednesday, May 27, 2026. THE CANADIAN PRESS\/Justin Tang Minister of Industry Melanie Joly speaks at the Canadian Association of Defence and Security Industries annual defence industry trade show CANSEC, in Ottawa, on Wednesday, May 27, 2026. THE CANADIAN PRESS\/Justin Tang <\/p>\n
According to Joly, EV assembly plant must be set up as a joint venture with majority Canadian ownership. It must use Canadian supplies and abide by the country\u2019s labour codes. For Chinese companies to make EVs in Canada, they also need to ensure data security. For example, guarantee that user data collected by the vehicle won\u2019t be transferred to the Chinese government when drivers connect their cell phone to the car. <\/p>\n
Joly also implied that progress was made in persuading Chinese auto makers to set up shop in Canada.<\/p>\n
\u201cI don\u2019t expect it to lead to results in days, but there can be positive conversations leading potentially to decisions in future months,\u201d she said.<\/p>\n
But that is a concern to Japanese auto companies operating in Canada. <\/p>\n
Kenichi Kawaji, the President and CEO of Mitsubishi Motor Sales of Canada, tells CTV News that Chinese EVs are difficult to compete against.<\/p>\n
\u201cChinese EVs are very nice. Its exterior and interior technology is amazing, with a good price. It will be difficult to fight,\u201d Kawaji said, later adding that he doesn\u2019t expect a surge in sales of Chinese EVs in the short term because Canada doesn\u2019t yet have the charging infrastructure in place to support it. <\/p>\n
While Mitsubishi does not have a manufacturing plant in North America, Kawaji says Mitsubishi will adapt by investing more in hybrid alternatives<\/p>\n
After Honda recorded US$15 billion in losses globally, it shelved a plan indefinitely to build EVs at its Alliston, Ont. plant. <\/p>\n