Canada’s electric vehicle (EV) market continued to lose ground in June 2025, with sales falling sharply for the second quarter in a row. According to the latest data from Statistics Canada, just 14,090 zero-emission vehicles (ZEVs)—a category that includes fully electric and plug-in hybrids—were sold last month.
That represents a 35.2 percent drop compared to June 2024 and marks the fifth straight month EV sales have declined in Canada.
These figures stand in stark contrast to the broader automotive market, which saw new vehicle purchases rise 6.2 percent year-over-year to 177,313 units. With ZEVs accounting for only 7.9 percent of total sales in June, Canada’s market share has now fallen well below double digits, a steep drop from nearly 20 percent in December 2024.
Incentive Loss Drives Market Contraction
The downturn in EV sales can attributed to the elimination of rebates earlier this year. Ottawa ended the federal $5,000 iZEV purchase incentive in January, and several provincial programs have either been scaled back or temporarily paused. For example, Quebec—historically Canada’s largest EV market—reduced its rebate from $7,000 to $4,000 before suspending it for two months.
This was a 65 percent decline in battery electric vehicle sales in the province during the first quarter of 2025.
The federal government has promised to reinstate some form of incentive following the April election, but no timeline has been provided. That uncertainty is contributing to buyer hesitation as customers are expecting the return of the rebate.
Tesla, once Canada’s dominant EV brand, has also felt the impact. The company accounted for less than 10 percent of ZEV registrations by April 2025, down dramatically from nearly half of the market just two years ago.
Provincial patterns further highlight the uneven picture. British Columbia led with a 19.2 percent adoption rate in Q1, though this marked a significant drop from late 2024. Quebec’s ZEV share plunged from 42 percent in Q4 2024 to just 14.8 percent in Q1 2025, while Ontario held steadier at 7.3 percent.
While April 2025 showed a brief rebound in Quebec when incentives were reinstated, the broader national market remains fragile. Until Ottawa sets clear policies and incentives, automakers are bracing for continued sluggish demand—and Canadian consumers are likely to remain on the sidelines.
