Chery Automobile considers building manufacturing plant in Canada

Chinese automotive giant Chery Automobile is evaluating plans to establish a manufacturing presence in Canada. According to reports, the company is considering utilizing idle production capacity and is in discussions with Canadian investors regarding potential partnerships.

If the plan proceeds, Chery would become the first Chinese automaker to operate a manufacturing facility in Canada. The company intends to begin sales in the Canadian market as early as next year. This move comes as Canada allows a quota of 49,000 Chinese new energy vehicles to be imported annually at lower tariffs.

Other Chinese manufacturers are also eyeing the Canadian market. Geely plans to begin sales in Canada next year, and BYD has previously expressed interest in local manufacturing, including inquiries regarding idle facilities in Ontario. Canadian officials have indicated that for Chinese automakers to establish local production, they must utilize local supply chains, adhere to Canadian labor standards, and meet specific software safety requirements to address national security concerns.