Dongfeng Motor Corporation Ltd. is the latest Chinese automaker preparing to enter the Canadian market, and its planned entry likely represents a broader effort by Chinese automakers to establish a strong presence in North America, says one auto analyst. Intense domestic competition is pushing China’s automakers to pursue growth abroad, Dominic Chiu, a senior analyst at Eurasia Group, told BNN Bloomberg. “They’re running on very thin margins, and that’s a main reason why they are expanding to international markets. Not just exporting, but also investing in manufacturing directly in other countries to produce EVs,” says Chiu. “And Canada is a hotspot.” - China’s carmakers rush to Canada as a ‘practice run’ for U.S. sales - First Chinese EVs arrive in Canada, but they come with a high price tag Chiu describes Dongfeng as one of the big four auto companies in China. The company is headquartered in Wuhan and operates in more than 100 countries. It is reportedly currently working to certify vehicles for sale in Canada. Last week, Lotus, owned by the Chinese Geely Group, became the first Chinese-built EV available for sale in the country after it shipped its first Eletre EVs that ranges from $119,000 to $159,000. All this comes months after the federal government’s decision earlier this year, to lower tariffs on a limited number of Chinese electric vehicles to save Canada’s agricultural sector from Chinese trade retaliation. Canada becoming a ‘hotspot’ Canada has become particularly attractive following the trade arrangement reached by Prime Minister Mark Carney and Chinese President Xi Jinping, says Chiu. Under that arrangement, Canada will initially allow up to 49,000 Chinese EVs per year to enter the country at a reduced tariff rate of 6.1 per cent. The vehicles had previously faced an additional 100 per cent surtax imposed by the former