While Canada’s iZEV rebate was paused indefinitely in mid-January 2025, the program performed well and created a surge in zero-emission vehicle (ZEV) sales across Canada with over 215,000 vehicles claiming the rebate in 2024. As expected, Tesla remains the dominant force, with Tesla, and the Model Y, leading all zero-emission vehicles (ZEVs) in sales.
However, in a surprise, Chevrolet’s Equinox EV outsold the Tesla Model 3, at least for those vehicles eligible for the iZEV rebate.
iZEV Incentives by Vehicle
According to newly released data from Transport Canada, the Tesla Model Y remains the best-selling iZEV-rebate eligible vehicle in Canada, with 29,354 units claiming the rebate between January and December 2024. This set a new benchmark for the iZEV rebate program, surpassing the previous record set in 2023, also by the Model Y, with 26,775 units.
In a surprise second place is the Chevrolet Equinox EV, which outsold the Tesla Model 3. With 15,495 units receiving the federal rebate, the Equinox EV has become a popular choice for Canadians, beating out the Model 3, which accounted for 13,799 units. For the Model 3, this was a nearly 19% drop from 2023, when the electric sedan accounted for 16,879 rebate claims.
Outside of the top 3, the next most popular iZEV-rebate eligible vehicles in 2024 were the Mitsubishi Outlander PHEV (13,443), followed by the Hyundai IONIQ 5 (12,808) and Toyota RAV4 Prime (11,646)
The Ford Mustang Mach-E (9,821), Hyundai Kona EV (9,046), Volkswagen ID.4 (8,318), and Ford Escape Hybrid (7,212) also performed well in the Canadian market, rounding out the top 10.
At the other end of the list are some vehicles that claimed just one rebate over the course of the year – Dodge Hornet PHEV, Ford Fusion Energi, Mini Cooper SE and Countryman, as well as the Hydunai Sante Fe, Tuscon, and Sorento PHEVs.
iZEV Incentives by Vehicle
When combined, Tesla’s overall performance in 2023 stood at 43,153 units, just shy of the pace set in the year prior at 43,654 units.
In second place was Hyundai, driven by strong sales of the IONIQ 5 and Kona EV, with 28,573 rebate claims in 2024, followed by Toyota (23,984) and Chevrolet (23,037).
iZEV Incentives by Province
When looking at the Transport Canada data by province, Quebec led all provinces with a staggering 116,796 iZEVs sold, accounting for more than half of all vehicles in the program. This was no doubt due in part due to the province’s own generous $7,000 rebate, which has since been paused and will soon be reduced to $4,000, before being eliminated entirely.
British Columbia followed with 48,576 sales, while Ontario saw 37,716 ZEVs enter the roads. Alberta, Nova Scotia, and New Brunswick showed modest sales, whereas regions like the Northwest Territories and Yukon had minimal uptake.
With 2025 now well underway, and without the iZEV rebate in play, it will be interesting to see how Tesla and other automakers fare over the course of the year. For Tesla it will be tough to tell the exact impact as the company does not report out on specific Canadian sales data, and without the iZEV rebate program, we won’t even have these stats at the end of this year to compare.
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