Starting in 2024, Canada will allow the import of 49,000 Chinese-made electric vehicles annually, subject to a 6.1% most-favored-nation tariff, with the quota increasing proportionally each year. Following the implementation of this policy, many Canadian auto dealers have begun actively seeking partnerships with Chinese automakers. Michael McGillivray, who manages 10 dealerships in Nova Scotia and New Brunswick, noted that Chinese EVs excel in materials, design, and driving experience. He has joined other Canadian dealers in attending the Beijing Auto Show to establish connections with Chinese manufacturers. Farid Ahmed, CEO of DSMA, a car dealership brokerage firm in the Toronto suburbs, revealed that the company has received inquiries from nearly 400 Canadian dealers regarding the distribution of Chinese brands and is currently facilitating partnerships with automakers such as BYD, Geely, and Chery. Test drive vehicles from some Chinese brands have already arrived in Toronto. According to S&P Global data, total vehicle sales in Canada exceeded 1.9 million units in 2023, with major brands including General Motors, Ford, Toyota, and Hyundai. Some local consumers have expressed an open attitude toward Chinese EVs, believing they will increase market choices and have a positive impact. However, the Canadian Automobile Manufacturers Association has expressed concerns about opening the market to Chinese EV imports. The Canadian government has established annual import quotas as a “safety barrier” to limit market share in the initial phase. Industry analysts estimate that Chinese EVs will account for 3% to 5% of the market in Canada initially, which is not yet sufficient to significantly alter the existing competitive landscape.
