The latest data shows that in the first two months of 2026, China's cumulative vehicle exports reached 1.352 million units, up 48.4% year-on-year, of which new energy vehicle exports stood at 583,000 units, surging 1.1 times year-on-year and accounting for 43.1% of total exports. NEVs have become the core growth engine for the global expansion of Chinese independent brands.
Against the backdrop of overseas markets becoming a key growth driver for China's auto sales, the signing of the China-Canada EV tariff quota agreement has emerged as a critical catalyst, with automakers such as BYD, Chery, and Geely accelerating their push into the Canadian market. The global expansion of independent brands is shifting from single-product exports to industrial ecosystem exports, securing an increasingly important position in the global automotive industry's transition toward electrification.
Export Policy Dividends Released
The intensive rollout of bilateral policies between China and Canada in 2026 has opened a significant gateway for independent brands into the North American market. In January of this year, China and Canada signed an electric vehicle tariff quota agreement. Canada granted Chinese-made electric models an annual import quota of 49,000 units, with in-quota tariffs reduced to 6.1% and the quota set to increase to 70,000 units within five years. On March 1, Canada officially launched a "first-come, first-served" application process for the first batch of 24,500 quota units, igniting the ambitions of Chinese automakers to expand into the market.
Reporter has learned that BYD, Chery and Geely have emerged as the core players sprinting into the Canadian market, each with distinct strategic focuses.
BYD has gained a first-mover advantage through its prior compliance preparations. Its models—Seagull, Dolphin, Atto 3, and Seal—have been included in Transport Canada's pre-qualification list. BYD is also the first Chinese automaker to register a passenger vehicle plant in this system. It is currently advancing the final certification process for its vehicles. At the same time, its Executive Vice President Li Ke has revealed that the company is conducting a feasibility study for establishing a plant in Canada, adhering to an independent operational model.
Chery, for its part, has completed the multi-brand trademark registration in advance, having filed for registrations of its Exeed, Omoda, and Jaecoo brands in Canada in 2025. In January of this year, Chery initiated recruitment for key positions in the Canadian market, building a localized team and entering the substantive preparation phase for market entry.
Geely, leveraging the existing channel resources of Volvo and Polestar, plans to introduce its Zeekr brand to Canada. It completed Zeekr's trademark registration in 2025. Its controlled brand Lotus also stands to benefit from the tariff adjustment, with the price of its Eletre all-electric super SUV expected to drop by 50%, and plans to expand its Canadian dealer network within the year.
"We are poised to become one of the first Chinese auto brands to enter Canada. The opportunity in the Canadian market is too rare. Now that we've taken the lead, we must make the most of it," said Feng Qing Feng, CEO of Lotus Group, in an interview with China Securities Journal. Lotus currently has six dealers in Canada. Riding on the favorable news, it expects to expand to around 12 dealers this year. "We have already started production. As soon as the detailed tariff implementation rules for Canada are released, our cars can be shipped immediately," said Feng.
Beyond these three leading automakers, the market expects 15 to 20 Chinese automakers to follow suit and establish a presence in Canada.
Holistic Deployment Unlocks New Space
On a global scale, the expansion of independent brands is taking shape across multiple regions. BYD recorded overseas sales exceeding 200,000 units in the first two months, accounting for more than half of its total sales. Xpeng plans to launch at least four new models in 2026 aimed at benchmark overseas markets, targeting a doubling of overseas sales this year and reaching 1 million units by 2030. GAC Group has set a target of a minimum of 250,000 units in overseas sales for 2026, with an aim to reach 300,000 units, and plans to establish over 1,000 global channel outlets within the year. Europe, Southeast Asia, the Middle East, and Latin America have become key regions for the global expansion of independent brands, with localized adaptation strategies for different regions being continuously implemented.
Zhang Yongwei, Chairman of China EV100, believes that while the domestic market is showing signs of relative saturation, the overseas market holds significant development potential. The export of new energy vehicles, in particular, is poised to become a key direction for future growth.
However, it must be noted that although the global expansion of independent brands has entered a period of rapid growth, multiple challenges remain, including regulatory barriers and localized operations, which are key factors restricting deeper market penetration overseas. Europe and the United States have imposed countervailing duties and EV tariffs on Chinese-made EVs, raising export costs. Canada's vehicle certification process is complex, with stringent safety and emission requirements. Starting certification from scratch can take a year or more. Furthermore, attitudes among overseas dealers toward Chinese automakers are divided. Issues such as insufficient brand recognition and underdeveloped after-sales service systems also need to be addressed.
In response to these challenges, independent brands are building a systematic overseas expansion capability by focusing on compliance capabilities, technological innovation, and localized deployment. Strengthening compliance has become the primary task. Automakers are setting up dedicated teams to study overseas market regulations, standards, and trade rules, and are making early intellectual property arrangements. BYD, Chery, Geely, and others have made vehicle certification a core task in advancing their Canadian market entry. At the same time, they are engaging with local financial institutions to tailor vehicle financing plans, lowering the purchasing threshold for consumers.
Technological innovation and localized adaptation are at the heart of product breakthroughs. Leveraging their advantages in new energy and intelligent technologies, independent brands have built competitiveness in batteries, intelligent driving, and range, while also optimizing products for different markets. For example, they are adapting charging interfaces for the European market and applying anti-corrosion treatment for Southeast Asian models. Chery emphasizes that overseas expansion must follow "local recipes and local flavors," taking into account differentiated overseas requirements from the product definition stage.
At the same time, supporting systems in overseas markets are being developed in tandem. OEMs are driving core component suppliers to expand overseas, enabling shared production capacity and joint warehousing. Service providers such as Zhejiang Yanbao Technology are setting up after-sales networks overseas, launching chain services that improve maintenance turnaround times to three times the local average. From parts supply to after-sales service, and from logistics and transportation to finance and insurance, an industrial ecosystem centered on auto exports is gradually taking shape.
"Global expansion will contribute vital incremental growth to China's auto sales. This trend is not only driven by automakers' desire to expand overseas sales but also by the strong profit motive pushing companies to go global," Zhang Yongwei told the reporter. This is evident from the profitability structure: a company focused solely on the domestic market has a significantly different profitability profile from one with overseas sales.
Zhang Yongwei, Chairman of China EV100, stated that Chinese automotive companies should not be satisfied with mere product exports but should strive to achieve global industrial development. By engaging in technological cooperation and promoting industrial upgrading, they can create win-win situations with overseas markets. "Market opportunities tend to favor those capable of exploring overseas markets. Whoever can gain a foothold in overseas markets first, building a synergistic development pattern with both domestic and international markets—consolidating their domestic base while actively expanding new international spaces—will seize the initiative in fierce market competition."
Source: China Securities Journal, Author: Gong Mengze
