Phate Zhang•Oct 23, 2026, 6:07 PM GMT+8
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- Chery is assessing idle capacity at existing plants and exploring partnerships with potential investors.
- A company executive says Canada warrants local manufacturing even without access to the US market.
Chery (HKEX: 9973) is considering local production in Canada, deepening its presence in the North American market beyond a planned sales launch in 2027.
Options under consideration include taking over idle capacity at existing plants and building factories with partners, executive vice president Zhang Guibing said in an interview at Chery’s headquarters in Wuhu, Anhui province, Bloomberg reported on Friday.
Canada is a market worth establishing manufacturing operations in even without access to the US, Zhang said, adding that the company is looking for suitable opportunities and discussing possible arrangements.
Chery is assessing idle capacity in Canada
Chery is assessing idle capacity in Canada and speaking with local investors interested in Chinese automakers, Zhang said, without identifying any companies.
The potential investment would support Canada’s efforts to attract capital to its auto industry, but could also heighten trade tensions with the US, the report noted.
Hefty tariffs and technology restrictions currently keep Chinese EVs effectively out of the US market, and American officials have made clear that Chinese-brand vehicles will not be allowed to enter through Canada, Bloomberg noted.
Canada’schanges to its import policy for China-made EVs
Canada’schanges to its import policy for China-made EVs this year have opened opportunities for Chinese automakers to expand in the country and spurred discussions about local production.
Under an agreement Canada reached with China in January, an initial annual quota of 49,000 China-made EVs can be imported at a most-favored-nation tariff rate of 6.1%. The quota will increase each year.
Canadian Industry Minister Melanie Joly visited China in June and met with representatives from BYD, Geely and Chery, saying at the time that the companies were willing to explore joint ventures.
Zhang said Chery vice president Charlie Zhang has
Zhang said Chery vice president Charlie Zhang has been in frequent contact with Joly The company is considering investment from multiple parties to establish Canadian manufacturing operations with partners
The potential Canadian project is part of Chery’s broader push to expand overseas production. Chinese automakers are localizing manufacturing to navigate trade barriers while seeking growth abroad to offset pressure on domestic sales.
Chery has established a joint venture plant in Spain and taken over a Nissan factory in South Africa to serve as a manufacturing hub for the continent. It is also exploring vehicle production at Nissan’s Sunderland plant in the UK.
Other Chinese automakers are also expanding into Canada
Other Chinese automakers are also expanding into Canada. BYD has previously said it is considering building a factory there, while Geely’s main brand announced its entry into Canada on October 9, with plans to introduce its first models in 2027.
Stellantis weighs producing Leapmotor EVs at idled Canada plant, report says- CnEVPost
Stellantis is exploring an early-stage plan with Leapmotor to produce EVs at an idled Canadian plant.
Leapmotor
Apr 2, 2026
CanadaGlobal Expansion
