As BYD inches closer to Mexico plant, company eyes foray into Canada market

BYD is looking to enter the Canadian passenger vehicle market, according to a regulatory document the Chinese electric vehicle maker filed in July.

Documents filed with authorities in Ottawa last week reportedly referred to lobbyists who were acting on behalf of BYD. The documents said the lobbyists were seeking to "advise on matters related to the expected market entry of BYD into Canada for the sale of passenger electric vehicles," as well as the establishment of a new business. 

However, the documents did not specify a timeline of BYD's plans and it was not clear when representatives of the company's Canadian unit -- BYD Canada -- met with government officials.

BYD already runs an electric bus plant in Canada. The 45,000 square-foot facility is based in the province of Ontario. The company says tests by the US Department of Transportation have shown that each zero-emission bus eliminates ~10 tonnes of nitrogen oxides, 350 pounds of diesel particulate matter, and ~1,690 tonnes of CO2 over the vehicle's 12-year lifecycle.

BYD's Canadian plans come even as the country evaluates the possibility on imposing duties BYD products, along the lines of the US and Europe. The Great White North said in June it was considering imposing tariffs on Chinese-made EVs, aligning with Western nations who consider the Chinese auto industry to be heavily subsidized by the state.

Last month, the Canadian government opened a month-long public consultation period during which it planned to weigh its response to Chinese EVs, noting that "China's unfair support for the EV sector, if left unchecked, could lead to an exponential surge of imports that will adversely affect planned EV investments and the transformation of Canada's automotive sector."

Even as Canada evaluates tariffs, BYD is inching closer to a factory in Mexico. The plant is expected to be ready by year end. However, Stella Li, CEO of BYD Americas, has said the company has no plans of selling its passenger EVs in the US because conflicting politics have made the market "complicated" and "confusing". 

In May, the company launched its first pickup truck, the Shark, in Mexico. Developed for the global market, the model was BYD's first global product launch outside of China.