Chinese EVs are coming to Canada, and dealers are eager to sell them
HALIFAX, Nova Scotia — Michael MacGillivray sees the arrival of Chinese electric vehicles in Canada as a potential game changer.
“I think this will be very eye-opening,” said MacGillivray, who manages 10 franchises in Nova Scotia and New Brunswick, Canada.
MacGillivray, who is the CEO of Century Auto Group and Sigma Auto Group, is working to become one of the dealers that will sell imported Chinese EVs in the country. In April, he traveled to the Beijing Auto Show with other dealers in Canada to build relationships with Chinese automakers and get ideas for the cars and SUVs they might eventually export to his country.
“When I was in China, I was very impressed by Chinese vehicles,” he said. “They have unique materials. Their styling is impressive. The ride is very impressive.”
Not everyone likes the idea of Canada allowing the sale of EVs imported from China.
The Canadian Association of Vehicle Manufacturers said the decision to allow the sale of Chinese-made electric vehicles is extremely concerning.
President Donald Trump was even harsher, calling the move a “disaster.” US Secretary of Transportation Sean Duffy “Canada will rue the day they let the Chinese Communist Party flood North America with EVs,” the post on X reads.
Officially, Canada only allows 49,000 Chinese-made EVs to be imported annually for retail sale at a tariff rate of 6.1%; This is a portion of the 100% tariff that applies to all other vehicles China will export to Canada.
This low tariff for electric vehicles convinced Chinese automakers that it was time to establish dealerships.
“We have received approximately 400 inquiries from different dealers across Canada who are very interested and excited to represent any of these Chinese brands,” said Farid Ahmad, CEO of DSMA, an auto dealership brokerage in suburban Toronto.
Ahmad connects dealers with Chinese automakers such as BYD, Geely and Chery.
“From their perspective, I think it gives them a foothold in the North American market,” he said.
General Engines, fordAccording to S&P Global, Toyota and Hyundai sell the most vehicles in Canada. Last year, industry sales reached 1.9 million vehicles; this was slightly more than all vehicles sold in California in 2025.
Limiting the number of electric vehicle sales in China to just 49,000 vehicles at a low tariff is one way for Canadian leaders to create a barrier to Chinese entry into the Canadian auto market.
“They’re being careful about how much volume is allowed,” said Michael Robinet, vice president of forecasting strategy at automotive industry consulting firm S&P Global Mobility. “3 percent to 5 percent of the market is pretty big, but still not something that would significantly change the competitive dynamic.”
Canadians on the street here told CNBC they’re curious and eager for the chance to buy electric models from China.
“I think they’re going to destroy the market for good,” Canadian Patrick Hunt said.
“So there’s definitely more opportunity, more options for people to choose different vehicles,” Canadian Daniel Haim said. “Given what’s going on with gas prices, I think it’s going to work out well for any Chinese manufacturers that come here, especially with electric vehicles.”
