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Episode #1336: Chinese automakers quietly prep a Canadian invasion, dealers ramp up ad spend amid tariff uncertainty, and even the Cozy Coupe gets an EV twist

Show Notes with links:

• Chinese automakers are laying the groundwork to enter Canada, with hiring, vehicle sightings, and dealer conversations signaling real momentum. With a new 49K EV import quota opening this year, brands like BYD, Geely, and Chery are positioning early for market entry.
  • Geely’s Zeekr brand is already hiring senior leadership in Toronto, signaling active plans for sales, service, and dealer network development.
  • Chery is testing vehicles in Toronto and courting Canadian dealers, even flying some to the Beijing Auto Show to build early relationships.
  • BYD is moving fastest on retail, aiming to open as many as 20 stores this year through local partnerships.
  • Despite the activity, no official quota allocations have been issued yet, and sales likely won’t begin until late this year.

• Rising tariffs and shifting inventory levels are putting dealer marketing back in the spotlight. As uncertainty creeps into pricing and supply, dealers are leaning harder into advertising to guide consumers.
  • Dealers spent $9.22B on advertising last year, up 4% and nearing pre-pandemic levels as the market stabilizes.
  • Digital dominates, capturing 73% of ad budgets, with third-party listings, search, and social leading the charge
  • Dealers spent an average of $705 per new vehicle sold on advertising, still well above pre-pandemic levels despite a slight year-over-year dip.
  • Third-party listing sites alone captured over 20% of total ad spend, making them the single largest channel in dealer marketing budgets.
  • “The future of the U.S. auto industry is murky… effects are difficult to quantify,” said NADA Chief Economist Patrick Manzi.

• Even the toy aisle isn’t immune to the EV transition. Little Tikes is giving its iconic Cozy Coupe a plug-in twist, introducing a playful charging station that mirrors the real-world shift from gas pumps to electrons.
  • Little Tikes launched a $33 “Cozy E-Charging Station” accessory for its classic Cozy Coupe, aimed at kids ages 18 months to 5 years.
  • The plug fits right into the existing fuel door, signaling how seamlessly EVs are replacing gas—even in pretend play.
  • The Cozy Coupe itself still runs Flintstones-style, powered by kids’ feet—not batteries.
  • The toy has sold up to 500,000 units annually at its peak, making it one of the most recognizable “vehicles” in America.
  • At $65 for the car, it may be the cheapest “EV” on the market, even if range is limited to the living room.

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

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