Geely picks Canada for its North American debut as U.S. moves to shut the door on Chinese automakers

On the same week a U.S. Senate bill advanced that could bar Chinese-linked automakers from American roads, China's Geely Auto announced it is planting its flag in Canada — the other side of the border — with plans to sell its first vehicles there in 2027.

Geely made the announcement on October 9, 2026, saying it has already assembled a Canadian team, begun establishing local operations, and is building a retail and service network through Canadian partners ahead of a commercial launch next year. The company has not yet disclosed which models it will sell, what powertrains they will offer, or what they will cost.

Canada represents an important next step in Geely Auto's international growth. We are entering this market with a long-term commitment, bringing our global technology and engineering capabilities to Canadian drivers while building strong local partnerships and the support customers need to feel confident in choosing Geely. We know that trust is earned over time, and we are committed to earning it here.— Bryan Wu, Managing Director, Geely Auto Canada

The move is made possible by a trade policy shift Canada finalized in January 2026: an agreement with China allowing up to 49,000 China-made electric vehicles into Canada each year at the standard most-favored-nation tariff rate of 6.1%. Canada had imposed an additional 100% tariff on Chinese-made EVs starting in October 2024 — on top of the existing 6.1% duty — making the market effectively closed to most Chinese brands. The January quota deal reopened it.

Geely is not alone in eyeing Canada. Lotus, which is part of the broader Geely Holding Group, had already moved ahead: on May 7, its first batch of 18 Eletre vehicles was loaded onto a ship bound for Canada, according to CnEVPost. Bloomberg reported in July that Dongfeng Motor was also pursuing Canadian vehicle certification, with its distributor saying the first two models could arrive in 2027.

The contrast with the United States could hardly be sharper. A regulation imposed by the Biden administration in early 2025 effectively banned all Chinese automakers from selling or building passenger vehicles in the U.S. because of concerns that such vehicles could transmit sensitive driver data to China. Washington also maintains tariffs of more than 100% on Chinese electric vehicles. Now a Senate bill — approved by the Senate Commerce Committee in July and backed by both Republican and Democratic sponsors — would go further, banning any company with more than 15% ownership by Chinese entities from selling vehicles in the U.S. at all.

That bill's reach extends well beyond pure Chinese brands. Geely Holding's ownership stakes mean several prominent nameplates could be caught by the 15% threshold. Senator Bernie Moreno, a Republican co-sponsor of the bill, acknowledged this week that Volvo Cars — majority owned by Geely Holding — and Aston Martin, 17% owned by Geely, both face potential prohibition under the current language. Britain's Lotus, majority owned by Geely, would also be affected, according to Moreno.

We're looking at a variety of different things.— Bernie Moreno, U.S. Senator (R)

Moreno said discussions are ongoing to find a carve-out for Mercedes-Benz, which carries nearly 20% passive ownership from Chinese entities and would be banned under the bill as written. Senator Rand Paul has indicated he will drop his opposition if Mercedes-Benz is removed from the bill's scope. Democratic co-sponsor Senator Elissa Slotkin said last week that all other Democrats support moving forward: "My understanding is it's 99 to 1." The bill has more than 100 co-sponsors in the House as well, and sponsors are seeking fast-track passage before the Senate adjourns until November.

For Geely, the overseas push is not just strategic positioning — it is a financial necessity. The company's sales inside China fell 23.28% in the first nine months of the year to 1,437,811 vehicles, while exports surged 169% over the same period to 797,670 vehicles, according to CnEVPost. In 2025, Geely Auto Group sold more than 3.02 million vehicles globally, including nearly 1.69 million new energy vehicles — a 90% year-over-year increase in EV sales, according to the company's own figures.

Geely said it will release details about its Canadian vehicle lineup, retail locations, pricing, and availability as the launch approaches. Consumers and media can follow updates at the company's newly launched Canadian website, geely.ca.

Why it matters — Canada's new EV quota deal is opening a North American beachhead for Chinese automakers at the exact moment the U.S. is moving to shut them out entirely — a divergence that will shape which vehicles North American consumers can buy and at what price.

Reported by electrek.co, newswire.ca, cnevpost.com, cnbc.com