Chinese EVs are coming to Canada, and some dealers can’t wait to sell them

HALIFAX, Nova Scotia — Michael MacGillivray sees the arrival of Chinese electrical autos in Canada as a possible recreation changer.

“I believe it’s going to a be an enormous eye-opener,” mentioned MacGillivray, who oversees 10 dealerships in Nova Scotia and New Brunswick, Canada.

Because the CEO of Century Auto Group and Sigma Auto Group, MacGillivray is working to change into one of many dealers within the nation who will sell imported Chinese EVs. In April, he went to the Beijing Auto Present with different dealers from Canada to set up relationships with Chinese automakers and get a really feel for the automobiles and SUVs they might ultimately export to his nation.

“Once I was in China, I used to be very impressed by the Chinese autos,” he mentioned. “They’ve supplies that are second to none. Their styling is spectacular. The trip may be very spectacular.”

Not everybody likes the thought of Canada permitting the sale of EVs imported from China.

The Canadian Automobile Producers’ Affiliation mentioned the choice to permit the sale of Chinese-made EVs was deeply regarding.

President Donald Trump is much more harsh, calling the transfer “a catastrophe.” U.S. Transportation Secretary Sean Duffy posted on X, “Canada will dwell to remorse the day they let the Chinese Communist Occasion flood North America with their EVs.”

Formally, Canada is permitting simply 49,000 Chinese-made EVs to be imported for retail gross sales yearly at a tariff price of 6.1%, a fraction of the 100% tariff that’s in place for all different autos China would export to Canada. 

That decrease tariff for EVs has satisfied Chinese automakers it is time to arrange dealerships.

“We acquired almost 400 inquiries from totally different dealers throughout Canada who are very and excited to characterize any of those Chinese manufacturers,” mentioned Farid Ahmad, CEO of DSMA, an auto dealership dealer in suburban Toronto.

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

“I believe from their perspective it offers them a foothold within the North American market,” he mentioned.

Normal Motors, Ford, Toyota and Hyundai sell probably the most autos in Canada, in accordance to S&P World. Final 12 months, trade gross sales topped 1.9 million autos, barely greater than the entire autos bought in California in 2025.

Limiting the variety of China EV gross sales with a low tariff to simply 49,000 autos is a method for Canadian leaders to put guardrails on permitting the Chinese to enter Canada’s auto market.

“They’re being cautious when it comes to how a lot quantity is being allowed in,” mentioned Michael Robinet, vp of forecast technique for S&P World Mobility, an automotive trade consulting agency. “Anyplace between 3% to 5% of the market is sizable however, nonetheless, not one thing that may change the aggressive dynamic considerably.”

On the road right here, Canadians informed CNBC they are curious and keen to have the prospect to purchase electrical fashions from China.

“I believe they are going to destroy the market in a great way,” mentioned Canadian Patrick Hunt.

“So, undoubtedly extra probabilities, extra choices for folks to select totally different autos,” Canadian Daniel Haim mentioned, “With what is going on on with fuel costs, I believe that it is going to work out properly for any Chinese producer coming right here, particularly with electrical autos.”