Chery Eyes Canadian Assembly Plant as 2027 Sales Launch Approaches

Chery is weighing whether to build or take over a factory in Canada, a move that would put Chinese vehicle manufacturing on North American soil — just not the part of it Washington controls.

Executive vice president Zhang Guibing said the company is looking at idle capacity at existing plants and at teaming up with outside investors to get production running locally, according to an interview at Chery’s Wuhu headquarters reported by Bloomberg. In his view, Canada justifies a manufacturing footprint on its own merits, even with the US border effectively shut to Chinese-brand cars.

A quota, then a factory

The shift follows Ottawa’s decision this year to loosen its stance on China-built EVs. Under a deal struck with Beijing in January, an initial 49,000 vehicles a year can enter Canada at the 6.1% most-favored-nation rate, with that ceiling rising over time.

That opening has set off a scramble. Industry Minister Melanie Joly traveled to China in June and sat down with BYD, Geely and Chery; her read afterward was that all three were open to joint ventures. Zhang said Chery vice president Charlie Zhang has stayed in close touch with Joly since, and that the automaker is open to bringing multiple investors into a Canadian operation.

The numbers so far: 49,000-unit annual import quota · 6.1% MFN tariff rate · 2027 target for first Canadian sales

Chery has not named any of the plants or partners under discussion. It is still early — the language from Wuhu is “assessing” and “exploring,” not “committing.”

Why Canada, if not America

US tariffs and tech restrictions have kept Chinese EVs out of that market almost entirely, and American officials have signaled they won’t tolerate a back door through Canada. Zhang’s argument is essentially that Canada is worth the investment regardless.

For Chery, the Canadian idea fits a wider pattern of building where the barriers are lowest:

• Spain: a joint venture plant already established
• South Africa: a former Nissan facility taken over as a hub for the continent
• UK: discussions about vehicle output at Nissan’s Sunderland site
• Canada: early-stage talks now under way

Rivals are moving on the same map. BYD has said it is studying a Canadian factory, and Geely’s core brand announced its Canadian entry on October 9, with its first models due in 2027. There is also a reported early-stage plan involving Stellantis and Leapmotor at an idled Canadian plant.

The politics are not simple. Any Chinese investment would be welcomed by a Canadian industry hungry for capital, but it risks aggravating trade friction with Washington. For now, Chery’s Canadian plans amount to a sales launch in 2027 and a manufacturing question that has no answer yet.