EV deal with China could hamper Canada’s domestic auto production: Report

EV deal with China could hamper Canada’s domestic auto production: Report

New Delhi, Jan 17 (IANS) China's deal with Canada to export up to 49,000 Chinese electric vehicles (EVs) represents more than a bid for market access but a ploy for market domination that could hollow out the North American country’s domestic auto production, a report has warned.

The report from Windsor Star said that as Canada's Prime Minister Mark Carney visited Beijing, “he should know that just like US President Donald Trump, Chinese Counterpart Xi Jinping also doesn't want Canada to build cars”.

The report argued that China’s plan to flood foreign markets with competitively priced vehicles, including electric vehicles, threatens established automakers and could leave Canada dependent on Chinese suppliers without the benefits of an integrated North American market.

It highlighted rapid gains by Chinese automakers in several regions, noting that Chinese brands increased their share of new‑car sales in Europe from under 3 per cent at the start of 2025 to more than 10 per cent by year‑end.

China is ploughing massive resources into becoming a global player in cars, the report cited Robin J. Brooks, an economist and senior fellow at the Brookings Institute in Washington, D.C, as saying.

"In Europe, the sale of Chinese vehicles has gone from four per cent of all imported vehicles to 14 per cent last year, and by some measures, more than 10 per cent of all cars sold in the latter part of 2025," he noted.

In Brazil where Chinese vehicles accounted for about 10 per cent of that country’s vehicle imports in 2019, it grew to 36 per cent in October 2025. Chinese EVs account for about 80 per cent of Brazil's EV market, the report noted.

While Canada makes roughly 1.3 million cars per year, Brazil makes around twice as much, close to 2.6 million per year.

The report warned that China will use subsidised pricing tactics, an industrial policy aimed for industrial dominance and an auto-deal also raises spyware concerns.

—IANS

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