Canada is set to impose a 100% tariff on Chinese EVs, following similar moves by the US and Europe. The move comes just as China’s largest EV maker, BYD, prepares to enter Canada.
Prime Minister Justin Trudeau told reporters on Monday that Canada will enforce a 100% tariff on Chinese EVs.
The sanctions mirror similar moves from the US and Europe to “protect domestic manufacturing” from the threat of low-cost EVs from China.
Last week, the European Commission announced new tariff rates as part of an ongoing investigation into Chinese electric car subsidies. The new EU import tariffs range from 9% to 36.3%, down from the initial 17.4% to 38.1% proposed in June.
Tesla and BYD were among the companies with rate drops. Tesla was the biggest winner, with its rate import rate dropping from 20.8% to just 9%. BYD’s rate was cut from 17.4% to 17%.
Canada will follow the US, its biggest trade partner by far, in enacting a 100% tariff rate on Chinese EV imports.
BYD to face 100% tariff in Canada
The update comes as China’s largest EV maker, BYD, preps to launch vehicles in Canada. BYD is already a leading EV brand in Mexico, but entering Canada could shake up the North American auto market.
Although BYD has not officially announced the news, a regulatory filing (via Reuters) in the country last month revealed it was moving closer.
BYD Canada also met with government officials and inquired about opening retail locations with dealers.
The Chinese EV maker is already making its presence known in Mexico after delivering its first batch of 100 Yuan Plus models last summer.
In May, BYD revealed its first pickup truck, the Shark PHEV, in Mexico. Starting at 899,980 pesos ($53,400), BYD’s pickup will challenge top-selling models in the region, like the Ford Ranger and the Toyota Hilux.
BYD is also closing in on a deal for a new plant in Mexico as it expands its North American manufacturing footprint.
BYD’s America CEO, Stella Li, has already said the company has no plans to sell passenger EVs in the US due to its “confusing” politics. However, it already sells its electric buses in the States.
Trudeau said the new tariffs on Chinese EVs will go into effect on October 1, 2024, to “level the playing field for Canadian workers.” The tariffs will apply to electric and select hybrid passenger cars, buses, trucks, and delivery vans.
Currently, Tesla is the only automaker selling Chinese-made EVs in the nation. However, several Chinese auto leaders, including BYD, are eyeing the Canadian market.
Electrek’s Take
Canada is following the US in imposing a massive 100% tariff rate on Chinese EVs to “protect” domestic workers.
Meanwhile, American automakers, including Ford and GM, are delaying or canceling major EV initiatives altogether, which could put them further behind the industry.
Ford canceled plans for its three-row electric SUV. Even if Chinese EVs face a 100% tariff, other overseas automakers like Kia and Hyundai are already gaining ground in the US. Hyundai, including Kia and Genesis, topped Ford and GM as the second-best-selling EV brand in the US in the second quarter.
Meanwhile, BYD topped Honda and Nissan in Q2 to become the seventh-largest automaker globally.
With low-cost EVs, like the Seagull, which starts at just $9,700 (69,800 yuan) in China, BYD is quickly catching up to America’s “Big Three.”
Ford has shifted plans to focus on smaller, more affordable EVs as it looks to keep pace with Tesla and Chinese OEMs. CEO Jim Farley has praised BYD’s vehicles in the past, calling the Seagull a “pretty damn good car.”
Farley has warned that if Ford or its rivals cannot keep up with Chinese EVs, then profits and market share are at risk. Ford’s leader said that if the company fails to compete, it will shrink into just the North American market.
National Grid Renewables has broken ground on its 100 MW Apple River Solar Project in Polk County, Wisconsin.
The Wisconsin solar farm, which will use US-made First Solar Series 6 Plus bifacial modules, will be constructed by The Boldt Company, creating 150 construction and service jobs. Apple River Solar will generate over $36 million in direct economic benefits over its first 20 years.
Once it comes online in late 2025, Apple River Solar will supply clean energy to Xcel Energy, which serves customers throughout the Upper Midwest. According to National Grid Renewables, the solar farm will generate enough energy to power around 26,000 homes annually. It will also offset about 129,900 metric tons of carbon dioxide emissions each year – equivalent to taking 30,900 cars off the road.
“We are excited to see this project begin as it underscores our dedication to delivering clean, reliable and affordable energy to our customers,” said Karl Hoesly, President, Xcel Energy-Wisconsin and Michigan. “This project is an important step in those goals while bringing significant economic benefits to Polk County and the local townships.”
Electrekreported in February that Xcel Energy, Minnesota’s largest utility, expects to cut more than 80% – and possibly up to 88% – of its emissions by 2030, putting it on track to hit Minnesota’s goal of net zero by 2040. It also says it’s on track to achieve its clean energy goals for all the Upper Midwest states it serves – Minnesota, Wisconsin, North Dakota, South Dakota, and Michigan.
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Tesla has announced that it will finally deliver 500 kW charging as it is about to install its long-awaited V4 Supercharger cabinets.
The rollout of Supercharger V4 has been a strange one, to say the least.
Tesla has been deploying the new charging stations for two years and calling them “Supercharger V4”, but it has only been deploying the charging stalls.
Supercharger stations are made of two main parts: the stalls, which are where the charging cable is located, and the cabinets, which are generally located further back and include all the power electronics.
For all these new “Supercharger V4”, Tesla was actually using Supercharger V3 cabinets. This has been limiting the power output of the charging stations to 250 kW – although
Today, Tesla officially announced its “V4 Cabinet”, which the automaker claims will enable of “delivering up to 500kW for cars and 1.2MW for Semi.”
Here are the main features of the V4 Cabinet as per Tesla:
Faster charging: Supports 400V-1000V vehicle architectures, including 30% faster charging for Cybertruck. S3XY vehicles enjoy 250kW charge rates they already experience on V3 Cabinet — charging up to 200 miles in 15 minutes.
Faster deployments: V4 Cabinet powers 8 posts, 2X the stalls per cabinet. Lower footprint and complexity = more sites coming online faster.
Next-generation hardware: Cutting-edge power electronics designed to be the most reliable on the planet, with 3X power density enabling higher throughput with lower costs.
Tesla reports that its first sites with the new V4 Cabinets are going into permitting now. The company expects its first sites to open next year.
We recently reported about Tesla’s new Oasis Supercharger project, which includes larger solar arrays and battery packs to operate the charging station mostly off-grid.
Early in the deployment of the Supercharger network, Tesla promised to add solar arrays and batteries to all Supercharger stations, and Musk even said that most stations would be able to operate off-grid.
While Tesla did add solar and batteries to a few stations, the vast majority of them don’t have their own power system or have only minimal solar canopies.
Back in 2016, I asked Musk about this, and he said that it would now happen as Tesla had the “pieces now in place” with Supercharger V3, Powerpack V2, and SolarCity:
It took about 8 years, but it sounds like the pieces are now getting actually in place with Supercharger V4, Megapacks, and this new Oasis project.
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Hyundai has a new secret weapon it’s about ready to unleash. To revamp the brand in China and counter BYD’s surge, Hyundai is launching a new AI-powered EV next year. The new model will be Hyundai’s first dedicated electric car for the world’s largest EV market.
With the help of Haomo, a Chinese autonomous startup, Hyundai will launch its first EV equipped with generative AI. It will also be its first model designed specifically for China.
A Hyundai Motor official said (via The Korea Herald) the company is “working to load the software” onto the new EV model, “which will be released in the Chinese market next year.” The spokesperson added, “The level of autonomous driving is somewhere between 2 and 2.5.”
In comparison, Tesla’s Autopilot is considered a level 2 advanced driver assistance system (ADAS) on the SAE scale (0 to 5), meaning it offers limited hands-free features.
With Autopilot, you still have to keep your eyes on the road and hands on the steering wheel, or the system will notify you and eventually disengage.
Haomo’s system, DriveGPT, unveiled last spring, takes inspiration from the OpenAI’s popular ChatGPT.
The system can continuously update in real-time to optimize decision-making by absorbing traffic data patterns. According to Haomo, DriveGPT is used in around 20 models as it looks to play a bigger role in China.
Hyundai hopes new AI-powered EV boosts sales in China
Electric vehicle sales continue surging in China. According to Rho Motion, China set another EV sales record last month with 1.2 million units sold, up 50% from October 2023.
Over 8.4 million EVs were sold in China in the first ten months of 2024, a notable 38% increase from last year.
BYD continues to dominate its home market. According to Autovista24, BYD accounted for 32.9% of all PHEV and EV (NEV) sales in China through September, with over half of the top 20 best-selling EV models.
Tesla was second with a 6.5% share of the market, but keep in mind these numbers only include plug-in models (PHEV).
Like most foreign automakers, Hyundai is struggling to keep up with the influx of low-cost electric models in China. Beijing Hyundai’s sales have been slipping since 2017. Through September, Korean automaker’s share of the Chinese market fell to just 1.2%.
According to local reports, Hyundai is partnering with other local tech companies like Thundersoft, a smart cockpit provider, and others in China to power up its next-gen EVs
With its first AI-powered EV launching next year, Hyundai hopes to turn things around in the region quickly. The new model will be one of five to launch in China through 2026.
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