Canada to import Chinese EVs under new import rules despite concerns from Canadian automakers

Canada is allowing almost 50,000 Chinese-made electric vehicles to be imported for retail sales annually at a tariff rate of 6.1%.

That’s opening the market for auto dealers in the country to sell Chinese EVs.

“I think it is going to be a huge eye-opener,” Michael MacGillivray, who oversees 10 dealerships in Nova Scotia and New Brunswick, Canada, told CNBC.

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.

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% and 5% of the market is sizable but, nonetheless, not something that will change the competitive dynamic significantly.”