Canada Is Getting Chinese-Built Lotus EVs That America May Never See

A Tale Of Two Borders

Just as Polestar has been barred from selling new vehicles in the U.S. starting with the 2027 model year over its ties to Geely, Lotus, another brand under the Chinese automaker, is reportedly set to ship its electric vehicles to Canada next month. This will mark the arrival of the country’s first Chinese-owned, Chinese-built EVs under the new trade agreement.

Reuters reported that Geely will hold a ceremony when the vehicles are delivered in Montreal. The shipment is being made possible by a deal between Canada and China that allows 49,000 EVs into the country in the first year at a reduced 6.1% tariff. BYD and Chery are expected to follow as they work to secure certification for their vehicles.

A Luxury Spearhead

However, the Lotus EV will not be the affordable model many Canadian buyers might expect. The EV in question is the Eletre, which is built at Geely’s factory in Wuhan, China. It starts at 119,900 CAD, or about $84,000 at current exchange rates, putting it in the same price territory as the Porsche Macan Electric and Tesla Model X. Speaking of Tesla, the EV maker has already shown the benefit of importing Chinese-made vehicles to Canada, with the move bringing a reported $8,000 price drop.

This agreement could be only the beginning of broader changes in the North American market as more Chinese automakers enter Canada. Buyers may gain more choices, including competitively priced EVs, but established automakers may be forced into a tougher fight to defend their market share.

Chinese EV makers are also reportedly interested in joint ventures, though their immediate focus will be building sales and gauging demand.

The Road Ends At The Border

The U.S., meanwhile, continues to take a hard line against Chinese-made cars, even proposing a ban that could keep them from entering the country. Such a restriction could create problems for Chinese vehicle owners in Canada and Mexico, who may be unable to drive their cars into the U.S. The proposal is aimed at protecting connected vehicles from Chinese technology that officials say could pose national security risks.

These measures are making Geely’s North American ambitions more complicated. The company is shipping the Lotus Eletre to Canada soon, even as it loses ground in the U.S., where Polestar is set to exit. Volvo has received specific authorization to keep selling its connected vehicles in the U.S., but its Chinese ties mean it remains under regulatory scrutiny.

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