China trade deal has Canadians looking forward to cheaper electric vehicles

In Canada, fans and foes of Chinese electric vehicles are holding their breath for brands like BYD to hit the market.Whether they love them or not, they share the hope that Chinese carmakers will help to bring all EV prices down, as affordability becomes a growing concern for consumers.Companies including BYD, Geely, Nio and Xpeng are preparing to roll out sales locations in Canada, seizing the opportunity of warmer ties between the two countries.Ottawa struck a milestone trade deal with Beijing in January, as both faced tariff threats from Washington. Part of the deal saw Canada cut tariffs on Chinese EVs to 6.1 per cent – down from more than 100 per cent – from the start of last month, with low-tariff imports capped at 49,000 vehicles a year.“I fully expect my next car to be a Chinese EV – after they set up shops here,” said John Currie, a university teacher in Toronto who owns a petrol-powered SUV. The electric cars available in the Canadian market were generally overpriced, he said.As Canada’s economy faced the triple threat of weak growth, job losses and inflationary pressure, car buyers had tighter budgets, said Preston Yuan, a partner at Factor E Motors, an independent Tesla showroom in Vancouver.“Many consumers will welcome Chinese brands like BYD with open arms, because they offer good value at affordable prices,” he said, adding that the recent surge in oil prices had boosted new and second-hand Tesla sales in British Columbia, “showing how sensitive people are to rising costs”.