HALIFAX, Nova Scotia – Michael MacGillivray sees the arrival of Chinese electric cars in Canada as a potential game changer.
“I think it’s going to be a huge eye-opener,” said MacGillivray, who oversees 10 dealers 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 country’s leading sellers of imported Chinese EVs. In April, he attended the Beijing Auto Show with other Canadian dealers to build relationships with Chinese automakers and learn about cars and SUVs they could eventually export to his country.
“When I was in China, I was impressed by Chinese cars,” he said. “They’ve got the basics. Their style is impressive. The way they 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 EVs made in China is deeply troubling.
President Donald Trump is even harsher, calling the move a “disaster.” US Transportation Secretary Sean Duffy wrote in X, “Canada will live to regret the day it allowed the Chinese Communist Party to flood North America with their EVs.”
Officially, Canada allows just 49,000 Chinese-made EVs to be imported for sale each year at a 6.1% tariff, a fraction of the 100% tariff that exists on all other vehicles China can export to Canada.
That low price of EVs has convinced Chinese automakers that it’s time to set up dealerships.
“We have received close to 400 inquiries from different dealers across Canada who are very interested and very happy to represent any of these Chinese brands,” said Farid Ahmad, CEO of DSMA, a car dealership in the suburbs of Toronto.
Ahmad connects dealers with Chinese car manufacturers such as BYD, Geely and Chery.
“I think from their perspective it gives them an opportunity to enter the North American market,” he said.
General Motors, FordToyota and Hyundai sell the most cars in Canada, according to S&P Global. Last year, industry sales increased by 1.9 million vehicles, which is slightly more than all the cars sold in California by 2025.
Limiting the number of China EV sales at a low price to just 49,000 vehicles is one way Canadian leaders are putting restrictions on allowing the Chinese to enter the Canadian auto market.
“They are aware of how much capacity is allowed to come in,” said Michael Robinet, vice president of forecasting strategy for S&P Global Mobility, an automotive industry consultancy. “Anywhere between 3% to 5% of the market is big but, however, it’s not something that will significantly change the competition.”
On the street here, Canadians told CNBC they are curious and eager for the opportunity to buy electronics from China.
“I think they’re going to destroy the market in a good way,” said Canada’s Patrick Hunt.
“So, there’s a lot of opportunity for people to choose different cars,” said Canadian Daniel Haim, “With what’s going on with fuel prices, I think it’s going to work well for any Chinese manufacturer that comes here, especially with electric cars.”
