BYD, Tesla May Face Import Caps as Canada Works Out China Quota

Canadian government officials are debating how to divide up the new low-tariff quota for Chinese-made electric vehicles, including whether to cap how much space each company can use.

Prime Minister Mark Carney agreed in January that Canada plans to allow as many as 49,000 Chinese-made EVs into the country annually at a low tariff rate of 6.1%. That has created an opportunity for leading Chinese carmaker BYD Co., Chery Automobile Co. and other auto manufacturers in China to sell to Canadian consumers for the first time.

It also paves the way for Tesla Inc. and other automakers to export ...