Core Viewpoint - Canada is launching a new electric vehicle (EV) development strategy aimed at becoming a global leader in the EV sector through significant investments, subsidies, and tax incentives, while also diversifying its automotive export markets, particularly through partnerships with China and South Korea [3][4]. Group 1: Investment and Support Measures - The Canadian government will implement a five-year "Affordable Electric Vehicle Program" with a budget of CAD 2.3 billion, providing subsidies of up to CAD 5,000 for battery electric vehicles (BEVs) and CAD 2,500 for plug-in hybrid electric vehicles (PHEVs) [4]. - The strategy includes a commitment to enhance the competitiveness of the automotive industry by improving tariff frameworks and maintaining equal tariffs on imported vehicles from the U.S. [4][5]. Group 2: Market Dynamics and Sales Projections - The sales of new energy vehicles in Canada are projected to grow from 40,000 units in 2020 to 110,000 units by 2025, although a 30% year-on-year decline is expected in 2025 due to policy and supply chain factors [5]. - In 2025, only three automotive groups are expected to exceed sales of 10,000 units, with Hyundai-Kia leading at 23,900 units, followed by Tesla at 19,800 units, and Toyota at 15,000 units [5]. Group 3: Trade Relations and Market Opportunities - Canada has signed a memorandum of understanding with South Korea to deepen strategic partnerships in future mobility, while also establishing a new strategic partnership with China to promote trade diversification and attract new investments in the automotive sector [4][6]. - The Canadian government will allow a quota of 49,000 Chinese electric vehicles annually, with a 6.1% most-favored-nation tariff, while ensuring that over 50% of these vehicles are priced below CAD 35,000 [6].