HALIFAX, Nova Scotia — Michael McGillivray sees the arrival of Chinese-made electric cars in Canada as a potential game-changer.
“I think this is going to be very eye-opening,” said McGillivray, who oversees 10 dealerships in the Canadian provinces of Nova Scotia and New Brunswick.
As CEO of Century Auto Group and Sigma Auto Group, McGillivray is working to become one of the dealers selling imported Chinese-made EVs in China. In April, he visited the Beijing Auto Show with other Canadian dealers to establish relationships with Chinese automakers and get a feel for the cars and SUVs that could eventually be exported to their home country.
“When I was in China, I was very impressed with the Chinese vehicles,” he said. “They have materials that are second to none. The style is impressive. The ride quality is very impressive.”
Not everyone likes the idea of Canada allowing the sale of EVs imported from China.
The Canadian Automobile Manufacturers Association said the decision to allow the sale of Chinese-made EVs is extremely concerning.
President Donald Trump was even harsher, calling the move a “disaster.” “Canada will live to regret the day the Chinese Communist Party flooded North America with EVs,” U.S. Transportation Secretary Sean Duffy wrote on X.
Officially, Canada only allows the import of 49,000 Chinese-made EVs per year for retail sale at a tariff rate of 6.1%, which is part of the 100% tariff imposed on all other vehicles China exports to Canada.
Lower tariffs on EVs convinced Chinese automakers that the time was right to set up dealerships.
“We’ve had close to 400 inquiries from various dealers across Canada who are very interested and excited to represent one of these Chinese brands,” said Farid Ahmad, CEO of DSMA, a car dealer brokerage in suburban Toronto.
Mr. Ahmad connects dealers with Chinese automakers such as BYD, Geely Automobile and Chery Automobile.
“From their perspective, I think this is a stepping stone into the North American market,” he says.
general motors, fordAccording to S&P Global, Toyota and Hyundai sell the most cars in Canada. Last year, the industry sold more than 1.9 million vehicles, slightly more than all the vehicles sold in California in 2025.
Limiting China’s low-tariff EV sales to just 49,000 vehicles is one way Canadian leaders are putting guardrails on Chinese entry into the Canadian auto market.
“They’re being cautious about how much they’re allowed to import,” said Michael Robinette, vice president of forecasting strategy at auto industry consulting firm S&P Global Mobility. “3% to 5% of the market is significant, but still not something that will significantly change the competitive dynamics.”
Canadians on the streets here told CNBC they are interested and eager to have the opportunity to buy electric models from China.
“I think they’re going to disrupt the market in a good way,” Canadian Patrick Hunt said.
“So there’s definitely more opportunity and choice for people to choose between different vehicles,” Canadian Daniel Heim said. “Given what’s going on with gas prices, I think it’s going to do well for the Chinese manufacturers coming here, especially when it comes to electric vehicles.”
