October 10, 2026 – Geely Auto officially announced its entry into the Canadian market on October 9, saying it has set up a local team and is building out retail and service networks before launching its first vehicles for Canadian consumers in 2027.
The move makes Geely another Chinese automaker to enter the North American market. Chinese brands have now established a presence in both of the United States’ neighbors, Mexico and Canada, leaving the U.S. as the only major North American market where Chinese carmakers remain absent.
Geely’s timing is closely tied to the electric vehicle export quota agreement reached between China and Canada earlier this year. In January 2026, during Canadian Prime Minister Carney’s visit to China, the two sides signed an agreement under which Canada granted an annual import quota of 49,000 Chinese-made electrified vehicles. Vehicles within the quota are subject to a 6.1 percent tariff rate, far lower than the 100 percent additional tariff previously imposed on Chinese EVs. The first batch of 24,500 quota slots began to be released in the first half of 2026, allowing Chinese-made EVs to enter the Canadian market under the new mechanism.
In Mexico, Chinese automakers have achieved deeper penetration. In 2025, Mexico became China’s top destination for auto exports, with 625,200 vehicles shipped there. Brands such as BYD, Chery, MG, Geely, Changan, JAC and Great Wall have all established local sales networks, with more than 400 dealerships dedicated to Chinese brands. In the first four months of 2026, Chinese brands’ share of Mexico’s auto market approached 30 percent, with BYD and MG breaking into the top 10 in cumulative local sales.
By contrast, the U.S. market has remained largely closed to Chinese automakers. In 2024, the United States raised tariffs on Chinese EVs to 100 percent. In January 2025, it banned Chinese intelligent connected vehicles from the U.S. market on national security grounds, and in 2026 moved to make the ban permanent through legislation. With tariffs, administrative bans and legislative barriers stacking up, Chinese carmakers currently have no realistic path into the U.S. market in the near term.
