Zhejiang Geely Holding Group has announced the first shipment of Chinese-made electric vehicles to Canada under a newly negotiated trade arrangement, sending 18 Lotus Eletre SUVs on May 7.

The exports became possible after Canada agreed in January to permit up to 49,000 Chinese-built EVs annually at a reduced 6.1% tariff.

The Eletre, produced in Wuhan for Geely-owned Lotus Cars, is the first premium EV from China to meet Canadian motor vehicle safety certification requirements.

The shipment, while modest in size, highlights how quickly Chinese automakers are moving to establish a presence in the Canadian market. Lotus has already opened six dealerships across Canada and plans to add six more before the end of the year.

The Eletre competes in the luxury performance SUV segment alongside models such as the Porsche Cayenne, Aston Martin DBX and Lamborghini Urus.

Other Chinese manufacturers, including BYD Company and Chery Automobile, are also preparing to enter Canada by building dealership and distribution networks.

The agreement marks a shift in Canada’s China policy after Ottawa imposed steep tariffs on Chinese EVs in 2024.

Prime Minister Mark Carney later negotiated the quota system with Beijing as part of a broader effort to stabilize trade relations, while China removed tariffs on several Canadian agricultural products.