Chery pushes Canada launch to early 2027, after aiming for Q4 2026

Chery Automobile (HKEX: 9973) is preparing to launch a brand in Canada early next year, Vice-President Charlie Zhang told Reuters on October 21, 2026. That is later than the fourth-quarter 2026 sales start he described in the spring, and it moves the Canadian debut of China's largest car exporter into 2027, the year Geely Automobile (HKEX: 0175) has set for its first Canadian vehicles.

In an April interview with Driving.ca, Zhang, then identified as executive vice-president of Chery International, said that subject to regulatory approvals and other conditions, Chery planned "to be ready to sell Chery vehicles in Canada in Q4 of 2026." He also expected the company to be ready to present its import permits in the third quarter. Reuters did not report a reason for the later timing, and it did not name the brand that will launch.

Zhang's interview with Reuters in Wuhu focused as much on the United States as on Canada. He said Chery is open to options including "a potential partnership with American automakers," without naming companies or describing what such a deal would involve. He also said Chery could build a car that does not rely on Chinese hardware or software. Chinese carmakers are effectively shut out of the US by tariffs of more than 100% and data-security rules.

The Canadian plan Zhang laid out in April was modest. Chery had set up a local team with its first office in the Toronto area, was in talks with dealers and expected to start with one or two models, with two battery-electric models in mind.

He named Omoda and Jaecoo as the brands under consideration and said the first focus would likely be British Columbia, Ontario and Quebec. He also said that not knowing how many vehicles Chery would be allowed to sell made firm plans difficult, and Chery has not confirmed the brand, models, prices or dealers since.

The Jaecoo J5 EV, shown in official Danish press photos, is one of Chery's battery-electric models on sale in Europe (Jaecoo)

The opening for Chery is the quota Ottawa created when it replaced its 100% surtax on Chinese-made EVs. Since March 1, 2026, up to 49,000 China-built EVs a year can enter at the most-favoured-nation tariff of 6.1%. Each shipment needs its own Global Affairs Canada permit, issued first come, first served, and importers can apply up to 30 days before the cars arrive.

Most of this year's quota is still open. As of October 9, importers had used 15,931 permits and 33,069 remained. The first six-month period used 15,603 of 24,500, and the second period, which runs to February 28, 2027, opened with 24,500 plus that unused volume but recorded just 328 in September and none in early October.

If early next year means January or February, Chery's first cars would arrive in the final weeks of the first quota year. The notice that governs the quota lets Global Affairs Canada set aside part of the available volume for automakers, including new entrants, but none had been announced as of mid-October. The department said then that it is consulting interested companies on how to use the remaining quota.

The second quota year, which starts March 1, 2027, changes the maths for newcomers. The cap rises by 6.5%, to roughly 52,000 vehicles, and a share of the quota is reserved for EVs with a free-on-board price of $35,000 or less, starting at 10% in year two and rising to 50% in year five. Chery has not said whether its launch models would fall under that price line.

Chery is not short of cars to send. The group exported a record 207,814 vehicles in September, more than six times the permits left for the whole Canadian quota year, and 1,551,178 in the first nine months, up 65.6% from a year earlier. Its total September sales were 292,308.

Europe shows how fast the group can scale once it enters a market. Chery says it sold 234,000 vehicles in 24 European countries in the first eight months of 2026, up 193%, and that it was the top-selling brand in the UK in August with 8,618 units.

The J5 EV in an old-town street; Chery has not said which models it will bring to Canada (Jaecoo)

Tesla (NASDAQ: TSLA) is the one carmaker that has publicly tied its Canadian sales to the quota. It stopped taking Canadian orders for the Shanghai-built Model 3 Premium in October after telling buyers it had used up its allocation, and its third-quarter report cited record quarterly deliveries in Canada without giving a number.

Chery will not be the only new name. Geely Auto Canada, based in Markham, Ont., said on October 9 that it is building a retail and service network and has not yet named its models. BYD (HKEX: 1211) still gives no launch date on its Canadian website.

Stellantis (NYSE: STLA) may add a different kind of Chinese import. An executive at its Dongfeng (HKEX: 0489) joint venture said two China-built electrified Jeeps, one EV and one plug-in hybrid, are planned for export from 2027 with Canada and Mexico among the possible markets, but Stellantis Canada said it would be "very premature" to say they are planned for Canada.

The first quota year closes on February 28, 2027, and the larger second-year cap opens the next day. Whether any of the 33,069 open permits are still waiting when Chery's first cars reach a Canadian port, or Ottawa first reserves some for newcomers, is the next thing to watch.