BYD’s Executive Vice President Stella Li has confirmed that the world’s largest EV maker is studying the Canadian market for a wholly owned manufacturing plant, signaling its aggressive expansion into North America. The comments mark BYD’s most ambitious public posture yet toward production and consolidation in the global auto industry.
The company’s preference for vertical integration, which includes manufacturing its own batteries, motors, power electronics, and semiconductors, makes shared ownership a poor fit for its operating model. This approach allows BYD to maintain control over its supply chain and reduce dependence on external partners.
Canada has been actively courting Chinese automakers to invest in local production, pushing them toward joint ventures with Canadian companies. However, BYD is not interested in this arrangement, instead opting for full ownership of any Canadian facility.
The timing makes sense, as Canada recently agreed to slash its 100% tariff on Chinese EVs down to 6.1%, allowing up to 49,000 Chinese-built vehicles annually. This quota is set to grow to around 70,000 over five years, with more than half expected to be affordable models priced under $35,000.
The reduced tariffs have fundamentally changed the math for BYD, which had previously shelved its Canadian market entry plans due to the original 100% tariff on Chinese EVs. Now, with the door reopened, BYD is looking beyond simple imports toward local production.
BYD’s interest in Canada isn’t happening in isolation, as other Chinese automakers Geely and Chery are also reportedly working to enter the Canadian market by late 2026. This move marks a significant step for China’s EV industry to establish a North American footprint.
However, BYD’s track record in Canada is not without its challenges. The company opened an electric bus assembly plant in Newmarket, Ontario, in 2019 but struggled with quality issues and political tensions between Ottawa and Beijing.
BYD’s willingness to go it alone in Canada, rejecting joint ventures in favor of full ownership, tells us everything about the company’s vision for itself as a vertically-integrated automaker. It produces everything that goes into its vehicles except for tires and glass, making it self-sufficient in its supply chain.
The acquisition talk surrounding BYD is also significant, as legacy automakers from Detroit to Tokyo are hemorrhaging cash trying to compete in both combustion and electric simultaneously. BYD is positioning itself as the buyer of last resort, a role it has played before with Geely rescuing Volvo from Ford.
