Chinese electric vehicles 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 it's going to be a big eye-opener,” said MacGillivray, who oversees 10 dealerships in Nova Scotia and New Brunswick, Canada.

As CEO of Century Auto Group and Sigma Auto Group, MacGillivray is working to become one of the country's dealers that will sell imported Chinese electric vehicles. In April, he went to the Beijing Auto Show with other Canadian dealers to build relationships with Chinese automakers and get a feel for the cars and SUVs they might eventually export to his country.

“When I was in China, I was very impressed with the Chinese vehicles,” he said. “They have unbeatable materials. Their styling is impressive. The ride is very impressive.”

Not everyone likes the idea of ​​Canada allowing the sale of electric vehicles imported from China.

The Canadian Vehicle Manufacturers Association said the decision to allow the sale of electric vehicles made in China was deeply concerning.

President Donald Trump is even harsher, calling the measure “a disaster.” US Transportation Secretary Sean Duffy posted on X: “Canada will live to rue the day they allowed the Chinese Communist Party to flood North America with their electric vehicles.”

Officially, Canada allows the annual import of just 49,000 Chinese-made electric vehicles for retail sales at a tariff rate of 6.1%, a fraction of the 100% tariff that applies to all other vehicles that China would export to Canada.

That lower tariff on electric vehicles has convinced Chinese automakers that it's time to set up dealerships.

“We received almost 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 broker in suburban Toronto.

Ahmad is connecting dealers with Chinese automakers such as BYD, Geely and Chery.

“I think from their perspective it gives them a foothold in the North American market,” he said.

general motors, FordToyota and Hyundai sell the most vehicles in Canada, according to S&P Global. Last year, industry sales exceeded 1.9 million vehicles, slightly more than all the vehicles sold in California in 2025.

Limiting the number of electric vehicle sales in China with a low tariff to just 49,000 vehicles is one way for Canadian leaders to put up barriers to allow the Chinese to enter Canada's auto market.

“They're being careful in terms of how much volume is allowed in,” said Michael Robinet, vice president of forecast strategy at S&P Global Mobility, an auto industry consulting firm. “Between 3% and 5% of the market is considerable but, even so, it is not something that is going to significantly change the competitive dynamic.”

On the street, Canadians told CNBC they are curious and eager for the chance to buy electric models from China.

“I think they will destroy the market in a good way,” said Canadian Patrick Hunt.

“So definitely more possibilities, more options for people to choose different vehicles,” said Canadian Daniel Haim. “With what's happening with gas prices, I think it's going to work well for any Chinese manufacturer that comes here, especially with electric vehicles.”

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