Geely signals entry into Canada with local production and global expansion

Geely confirms plans to sell Geely Auto in Canada with local production, signaling expansion beyond Volvo and Polestar.

Geely Holding Group has reported that it should receive certification from Canadian authorities soon for Geely Auto vehicles, marking for the first time, at an executive level, the intention to sell cars under its own brand in Canada.

The group manages the brands Geely Auto, Volvo, Polestar, Zeekr, Lynk & Co, Lotus, and Proton, which are already active in European and North American markets.

CEO Andy An told Bloomberg that Geely is not only targeting Canada but also Brazil, South America, Eastern Europe, and Southeast Asia. Geely's globalization comes largely from exports, but production may be localized; there has been no confirmation of a plant in Canada.

These comments constitute the clearest signal that Geely plans to expand its presence beyond the current operations in Canada through its Swedish brands.

Volvo and Polestar have already sent vehicles manufactured in China to Canada before the 100% tariff on Chinese EVs, which has been in effect since October 2024.

Andy An, former CEO of Zeekr, was promoted to lead the group last year and now drives the global expansion strategy.

International Appeal

Sales outside of China nearly tripled in February, with Geely exporting 60,879 vehicles that month, a 138% increase compared to the previous year.

In the domestic market, the group surpassed BYD for the second consecutive time.

Canadian Market Reopened

On January 16, Canada and China signed a trade agreement with reduced tariffs for Chinese EVs, down to 6.1%.

In return, China reduced tariffs on canola and other Canadian products.

The agreement initially provides for 49,000 Chinese EVs per year with the reduced tariff, gradually increasing to 70,000 units by 2030.

Global Affairs Canada opened the import permit process on March 1. The first allocation of 24,500 permits is available until August 31, on a first-come, first-served basis. A second allocation of 24,500 permits is planned between September 2026 and February 2027.

Unifor — Canada's largest private union — called the agreement a self-inflicted wound on the automotive sector, already pressured by the US tariff. The North American trade representative classified the agreement as problematic.

Ontario Premier Doug Ford asked Quebec and British Columbia to drop provincial EV sales mandates, amid a redesign of the regulatory landscape that could harm domestic manufacturers.

Geely's Plan in Canada

Unlike BYD and Chery, Geely already operates in Canada through Volvo and Polestar, which had already imported vehicles manufactured in China before the current tariff.

Both brands already hold certifications from Transport Canada, which gives them an advantage in the current import quota.

Geely also registered the Zeekr brand in Canada last year, signaling plans for direct market entry, either with the Geely Auto brand or with Zeekr.

BYD and Chery

BYD explored Canada in 2024 but suspended plans following the 100% tariff on Chinese EVs.

With the new agreement, a BYD executive described the signal as positive and indicated internal discussions to reactivate expansion plans in Canada. BYD is also considering setting up a factory in Canada, preferring to operate the facility alone, without a joint venture.

Chery has already started hiring staff in the country to set up operations and has requested the registration of several brands in Canada, including Exeed, iCar, Jaecoo, Lepas, Luxeed, and Omoda.

Affordable Price? Not Always

The final rules published on March 11 do not require Chinese EVs to meet the affordability threshold in the next 12 months. The import price ceiling below CAD 35 thousand will only come into effect in the quota year of 2027, with progressive targets until 2030.

The government says the quota considers the import price at the border, not the price paid by consumers. Chinese vehicles do not qualify for the EV affordability program, which grants incentives of up to CAD 5 thousand only for vehicles produced in Canada or in trade partners with a free trade agreement.

The cheapest EV available in Canada is the Kia EV4, with a starting price of CAD 42,185. The average transaction price for EVs in the country was CAD 57,600 in 2025, according to JD Power cited by Automotive News.

Canada has been encouraging manufacturers to use regulatory competition as leverage for joint ventures that supply vehicles from local plants.

In 2025, Geely sold 2.69 million vehicles globally, compared to 2.17 million in 2024.

I invite you to leave a comment: do you believe Geely will manage to establish local production in Canada and what would be the impact of this on the global automotive market?