Are Chinese EVs Spying on You? Data Privacy Facts Canadian Buyers Need to Know

It is the question that surfaces in every Reddit thread and comment section whenever Chinese electric vehicles come up: are they spying on you? The short answer is that every modern car collects enormous amounts of your personal data. But there are important nuances that Canadian buyers need to understand before dismissing the concern entirely — or panicking about it. This guide lays out the facts.

## What Data Do ALL Modern EVs Collect? Before singling out Chinese automakers, consider this: a 2023 Mozilla Foundation study ranked cars as the “worst category of products for privacy” they had ever reviewed. Tesla, Ford, GM, Hyundai, and BMW all collect similar types of data. Here is what a typical connected EV gathers:

- Location data — Real-time GPS, trip history, frequently visited destinations - Driving behaviour — Speed, acceleration, braking patterns, energy consumption - Vehicle diagnostics — Battery health, software update status, component performance - Personal information — Synced phone contacts, Bluetooth call history, climate preferences - Camera and sensor feeds — ADAS systems continuously record the vehicle’s surroundings Tesla uses video from its vehicles’ cameras to train its Autopilot neural network. General Motors admitted to sharing driver location data with data brokers. Subaru’s privacy policy claims the right to monitor “passengers’ emotions.” The problem is industry-wide, not China-specific.

## How Is Chinese EV Data Handled Differently? The core concern revolves around China’s National Intelligence Law of 2017, which theoretically requires Chinese companies to cooperate with state intelligence agencies if asked. This is a legitimate point of discussion. However, the reality is more nuanced than the headlines suggest.

BYD, the world’s largest EV manufacturer, has taken concrete steps to address these concerns in Western markets:

- European data stays in Europe — BYD partnered with Google Cloud to host all European vehicle data on servers within the EU. No vehicle data is transferred to China. - Local compliance teams — BYD Europe established a dedicated privacy compliance team operating under GDPR rules - Third-party audits — Independent cybersecurity assessments of BYD’s connected vehicle platform have been conducted for the European market For the Canadian market, any automaker — Chinese or otherwise — must comply with the Personal Information Protection and Electronic Documents Act (PIPEDA). This means data collection requires informed consent, must be limited to what is necessary, and data must be stored with appropriate security safeguards.

## What Are the Actual Security Concerns? There are legitimate security considerations that go beyond personal privacy:

- Connected vehicle software — In January 2025, the US Department of Commerce issued a final rule banning connected vehicle software and hardware from China and Russia, citing national security concerns. The rule takes effect for software in model year 2027 vehicles. - Fleet tracking potential — Theoretically, a compromised connected vehicle platform could track the movements of thousands of vehicles simultaneously - Over-the-air updates — The ability to push remote software updates raises questions about who controls the vehicle’s systems long-term - Camera networks — ADAS cameras on thousands of vehicles create a distributed surveillance capability, regardless of the manufacturer’s nationality Important context: these same concerns apply to any foreign-made connected vehicle. A Korean EV or a German EV with Chinese-sourced software components raises similar questions. The debate is really about connected vehicle governance broadly, not just about Chinese brands.

## Where Does Canada Stand on Policy? Canada has not yet matched the United States’ restrictive approach. Here is the current policy landscape:

- Transport Canada is monitoring developments but has not issued specific restrictions on Chinese connected vehicle technology - The Office of the Privacy Commissioner has published general guidance on connected vehicles, emphasizing that manufacturers must obtain meaningful consent and minimize data collection - The 100% tariff on Chinese EVs (announced October 2024) was motivated by trade and industrial policy, not data privacy concerns - No software ban equivalent to the US Department of Commerce rule exists in Canada This policy gap means Canadian buyers need to do their own due diligence until regulations catch up. The good news: industry pressure is pushing all automakers toward greater transparency.

## BYD’s European Privacy Model: A Template for Canada? BYD’s approach in Europe offers a glimpse of what Canadian buyers can expect. The company has:

1. Partnered with Google Cloud for all connected vehicle data hosting within Europe 2. Published a transparent privacy policy outlining exactly what data is collected and why 3. Committed to zero data transfer to China for vehicle telemetry and user data 4. Submitted to third-party cybersecurity audits of its connected vehicle systems When BYD launches in Canada — with models like the BYD Seal expected once the quota permit system is operational — the company will need to meet or exceed these standards to comply with PIPEDA and win consumer trust.

## Practical Tips for Canadian EV Buyers Whether you are buying a BYD, a Tesla, or a Hyundai, here is how to protect your data privacy:

1. 1Read the privacy policy before you buy — Check where data is stored, what is collected, and whether you can opt out
2. 2Disable non-essential connected services — Turn off features you do not use, especially location sharing and driving behaviour tracking
3. 3Do not sync your phone contacts unless the feature is genuinely useful to you
4. 4Review infotainment privacy settings — Most systems allow you to limit data sharing from the settings menu
5. 5Factory reset before selling — Wipe all personal data from the vehicle’s systems before transferring ownership
6. 6Check for third-party data sharing — Ask the dealer whether your data will be shared with insurance companies, data brokers, or advertising networks

## The Bottom Line for Canadian Buyers Data privacy in connected vehicles is a real concern — but it is an industry-wide concern, not a uniquely Chinese one. Tesla has faced lawsuits over employee viewing of customer camera footage. GM sold driver data to insurance companies. Virtually every major automaker has received poor privacy grades from independent reviewers.

Chinese automakers like BYD actually have an incentive to be more transparent about data practices because they know the scrutiny is higher. The European model — local data storage, Google Cloud partnership, third-party audits — sets a strong precedent.

For Canadians considering a Chinese EV, the practical advice is simple: apply the same data privacy scrutiny to every vehicle you consider, demand transparency from all manufacturers, and support stronger connected vehicle privacy regulations in Canada. Check our buying guides for more practical advice on navigating the Chinese EV market.

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