Chery weighs Canadian output, targeting 2027 sales launch

Chery is evaluating local production in Canada ahead of a planned 2027 sales launch, executive vice president Zhang Guibing said, with options including taking over idle capacity at existing plants and building factories with partners.

Zhang made the comments in an interview at Chery's headquarters in Wuhu, Anhui province, Bloomberg reported on Friday. The Chinese automaker, listed in Hong Kong under ticker 9973, is also speaking with local investors interested in Chinese carmakers, though Zhang did not identify any companies.

Canada justifies manufacturing investment on its own, he argued — no US access required.

"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.

What changed to make this viable?

Ottawa's import policy shift this year. Under an agreement Canada reached with China in January, an initial annual quota of 49,000 China-made EVs (battery-electric vehicles) can enter at a most-favored-nation tariff of 6.1%. The quota grows each year. That opening has both created expansion room for Chinese automakers and spurred concrete talks about building cars on Canadian soil.

The diplomatic groundwork is already laid. Canadian Industry Minister Melanie Joly visited China in June and met representatives from BYD, Geely and Chery, saying the companies were willing to explore joint ventures (JVs — jointly owned manufacturing companies). Zhang said Chery vice president Charlie Zhang has been in frequent contact with Joly since.

The company is considering investment from multiple parties to establish Canadian manufacturing with partners, Zhang said — an assembly structure, not a wholly owned plant, at least for now.

The US problem hasn't gone away

Tariffs and technology restrictions currently keep Chinese EVs effectively out of the US market. American officials have also made clear that Chinese-brand vehicles won't be allowed into the US through Canada, Bloomberg noted. Any Chery investment would therefore serve Canada — roughly 1.9 million vehicles a year in total sales — not as a tariff-hopping backdoor into America.

There's a political cost anyway. Bloomberg noted the potential investment would support Canada's push to attract auto capital while heightening trade tensions with Washington.

What does this change for Chery's North American math? It converts Canada from an export destination into a potential production base, and it puts the company in the same queue as rivals circling the market.

Part of a wider localization push

The Canadian project fits Chery's broader overseas manufacturing strategy. Chinese automakers are localizing production to get around trade barriers while chasing growth abroad to offset weak domestic sales.

Chery's track record so far:

• A joint venture plant in Spain
• The former Nissan factory in South Africa, taken over to serve as a continental manufacturing hub
• Exploratory talks on vehicle production at Nissan's Sunderland plant in the UK

Competitors are moving on Canada in parallel. BYD has previously said it is considering building a factory there. Geely's main brand announced its Canadian entry on October 9, with first models planned for 2027 — the same launch year Chery has set for sales.

What to watch next

Watch for three things: a signed partner or investor agreement in Canada, Chery's first model confirmation for the 2027 sales launch, and the annual increase in the 49,000-vehicle import quota, which will set the pressure on any local plant to actually get built. Intentions are on the record; capacity commitments are not.