Canada cut tariffs on Chinese electric vehicles to just 6.1 percent earlier this year, aiming to bring affordable EVs to the market.
However, the first models arriving are not the budget-friendly cars many anticipated.
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Instead, Canadians are seeing the Lotus Eletre, a high-performance electric SUV built in Wuhan, China.
The base model starts at CA$119,000 (about US$84,000), while the flagship version reaches CA$159,000 (US$112,000).
Lotus Benefits From Reduced Tariffs
Lotus, owned by Geely, already has a presence in Canada, allowing it to quickly take advantage of the reduced quota.
Up to 49,000 Chinese EVs can enter the country at the lower rate over the next year.
Since March, fewer than 3,000 EVs have arrived from China, with only 18 Lotus Eletres landing in an initial shipment in May.
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Lotus Cars Americas CEO Max Trantini said interest in the Eletre is high but did not disclose sales or import numbers.
The softer tariff is a boon for Lotus, which had to hike US pricing in late 2024 due to tariffs there.
The Eletre originally planned at US$107,000 suddenly became at least US$229,000 in the US.
Trantini noted that the car was developed for both the US and Canadian markets, but US tariffs forced a hold on imports.
"We believe that the car is perfect for the Canadian market," he told CTV News.
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Other Chinese automakers like BYD and Chery are also planning local launches, but so far, the Lotus Eletre is the most prominent arrival under the new trade deal.
