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 it is going to a be a huge eye opener,” said MacGillivray, who oversees 10 dealerships in Nova Scotia and New Brunswick, Canada. 

As the CEO of Century Auto Group and SIGMA Auto Group, MacGillivray is working to become one of the dealers in the country who will sell imported Chinese EVs. In April, he went to the Beijing Auto Show with other dealers from Canada to establish relationships with Chinese automakers and get a feel for the cars and SUVs they could eventually export to his country.

“When I was in China, I was very impressed by the Chinese vehicles,” he said. “They have materials that are second to none. 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 Vehicle Manufacturers’ Association said the decision to allow the sale of Chinese-made EVs was deeply concerning.

President Donald Trump is even more harsh, calling the move “a disaster.” U.S. Transportation Secretary Sean Duffy posted on X, “Canada will live to regret the day they let the Chinese Communist Party flood North America with their EVs.”

Officially, Canada is allowing just 49,000 Chinese-made EVs to be imported for retail sales annually at a tariff rate of 6.1%, a fraction of the 100% tariff that is in place for all other vehicles China would export to Canada. 

That lower tariff for EVs has convinced Chinese automakers it’s time to set up dealerships.

“We received nearly 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 like BYD, Geely and Chery.

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

General Motors, Ford, Toyota and Hyundai sell the most vehicles in Canada, according to S&P Global. Last year, industry sales topped 1.9 million vehicles, slightly more than all of the vehicles sold in California in 2025.

Limiting the number of China EV sales with a low tariff to just 49,000 vehicles is one way for Canadian leaders to put guardrails on allowing the Chinese to enter Canada’s auto market. 

“They’re being careful in terms of how much volume is being allowed in,” said Michael Robinet, vice president of forecast strategy for S&P Global Mobility, an automotive industry consulting firm. “Anywhere between 3% to 5% of the market is sizable but, nonetheless, not something that will change the competitive dynamic significantly.”

On the streets of Nova Scotia, Canadians told CNBC they are curious and eager to have 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 chances, more options for people to choose different vehicles,” Canadian Daniel Haim said, “With what’s going on with gas prices, I think that it’s going to work out well for any Chinese manufacturer coming here, especially with electric vehicles.”