Quebec is rolling back its plan to ban gasoline-powered vehicle sales in 2035, instead setting a target of 90% zero-emission vehicle (ZEV) sales. The decision comes as EV adoption slows across Canada, with sales falling in the first half of 2025 following the end of incentives and rising prices.
Originally, Quebec had committed to phasing out combustion-engine passenger vehicles entirely by 2035. But under the new approach, only 90% of new light-duty vehicle sales must be ZEVs, leaving room for conventional or hybrid vehicles.
The mandate will now recognize both plug-in hybrids (PHEVs) and full battery-electric vehicles (BEVs), with conventional hybrids counting for partial credit toward compliance.
“The world has changed, and Quebec must adapt,” Environment Minister Bernard Drainville said. “My priority is to find the right balance between protecting the environment and economic development. Quebec consumers will benefit from this, as they will have a wider choice of electric and hybrid vehicles.”
The policy shift comes as EV sales lose momentum nationwide. According to the latest data, ZEVs accounted for just 9.2% of new light-vehicle registrations in Canada during Q2 2025, down from 9.7% in Q1. While overall ZEV volumes increased by 25.6% quarter-over-quarter, they grew more slowly than the broader auto market, which expanded by 32.3%, underscoring a loss of momentum.
Quebec, historically Canada’s EV leader, also saw a steep drop. After hitting a record 42% ZEV share in Q4 2024, the province’s adoption rate fell to just 11.8% in Q2 2025.
Several factors were likely the rollback. Quebec’s generous EV incentive program, previously offering $7,000 off the purchase of a qualifying EV, was paused for several months earlier this year, before being reinstated at $4,000. The rebate is officially set to be phased out by 2027. At the same time, the federal iZEV rebate program was suspended, removing a major national incentive.
At the national level, the federal government has paused its 2026 ZEV mandate, which would have required 20% of new sales to be zero-emission. The longer-term 2035 target technically remains in place, but the current sales trend raises doubts about whether it can realistically be achieved without renewed incentives and infrastructure investment.
