Lotus, the British-based sports car manufacturer owned by Geely, will be the first Chinese electric vehicle (EV) brand to enter the Canadian market thanks to a recently agreed-upon 6.1% tariff, as announced by CEO Feng Qingfeng. This move comes amid temporary disruptions to Lotus exports to the Middle East due to ongoing regional conflicts.
Canada’s New EV Tariff and Lotus’s Opportunity
The Canadian government has agreed to a quota of 49,000 Chinese EVs annually, which will be subject to the 6.1% tariff rate rather than the previously applied 100% levy. This deal, finalized during Canadian Prime Minister Justin Trudeau’s visit to China in January, represents a significant opening for Chinese EV manufacturers.
“The Canadian market opportunity is too precious to miss,” stated Feng Qingfeng. “Since we’ve taken the lead, we must capitalise on this advantage.”
Lotus already has six dealerships established in Canada, with plans to expand to approximately twelve this year. Production is prepared, and vehicles can be exported as soon as Canada publishes its detailed tariff implementation guidelines in March.
Middle East Export Suspension and Global Strategy
The company has temporarily paused some vehicle exports to the Middle East due to ongoing regional conflicts, as local dealers provide updates on the situation. This disruption is partially offset by the strategic push into the Canadian market.
Lotus aims for a global sales distribution of “3331” – 30% each for China, Europe, and the United States, with the remaining 10% allocated to other regions. Currently, the company prioritizes the Chinese and European markets.
Geely’s Role and Production Footprint
Founded in 1948 and acquired by Geely in 2017, Lotus maintains its production base in the UK, which serves as a key export hub. In 2024, North America accounted for 21% of Lotus sports car global deliveries, with the US market receiving 60% of the UK-produced vehicles. The company recently unveiled its LTS (Lotus Tuned Specification) engineering standard and the new Lotus For Me super-hybrid vehicle, set to launch in China this month before expanding into Europe later in the year.
This expansion into Canada marks a strategic milestone for Lotus, leveraging new trade opportunities while navigating geopolitical challenges in other regions. The company is poised to capitalize on the Canadian market, potentially offsetting losses from disrupted exports elsewhere.
