The third quarter of 2024 marked a milestone in Canada’s transition to sustainable transportation, as zero-emission vehicles (ZEVs) accounted for 16.5% of all new light-duty vehicle registrations, translating to one in six new cars sold, a significant increase from 13.4% in Q2 2024.
Rising Adoption Rates Across Canada
According to newly released data from S&P Global Mobility, battery electric vehicles (BEVs) saw a 15.1% increase in sales, bringing their market share to 12.2%. Plug-in hybrid electric vehicles (PHEVs) also contributed, with a 12.4% boost in volume. These gains came despite an overall 6.8% decline in light-duty vehicle registrations, underscoring the growth of the ZEV market in an otherwise declining automotive market.
Among the provinces, Quebec maintained its leadership, with 34.6% of new vehicle registrations being ZEVs—a dramatic rise from 28.4% in Q2. British Columbia followed at 24.9%, while Ontario reached 9.0%, reflecting steady progress. In Atlantic Canada, Prince Edward Island led with a 9.6% adoption rate, while Alberta and Manitoba achieved 5.6% and 6.3%, respectively.
Key Drivers of Growth
S&P Global says the increase in ZEV registrations is attributed to several factors:
- Government Incentives: Provincial and federal programs have played a significant role in making ZEVs more affordable. In Quebec, models like the Chevrolet Bolt EV and EUV benefited from combined rebates of up to $12,000.
- Expanding Charging Infrastructure: Provinces with robust charging networks, like British Columbia and Quebec, have seen higher adoption rates.
- Technological Advancements and Pricing: Manufacturers are introducing competitive models at lower price points. For instance, the Chevrolet Equinox EV has gained popularity with its affordability and incentives.
Leading Manufacturers
Tesla remained the dominant player in the Canadian ZEV market, with a 15.2% increase in sales from Q2, driven by high demand for the Model Y and Model 3. Chevrolet’s ZEV sales surged by 138.0%, thanks to the Bolt EV and EUV, while Toyota experienced a 72.2% rise due to its Prius Prime and RAV4 Prime. Hyundai, Mercedes, and emerging players like VinFast, which saw a 66.52% increase, also contributed to the market’s growth.
Challenges and Future Outlook
While Q3 2024 showcased promising growth, challenges remain. S&P Global notes the pace of charging infrastructure development, economic factors, and potential changes in government policies could influence future adoption rates. Nonetheless, forecasts are optimistic. ZEVs are expected to account for 19.0% of vehicle sales in 2025, rising to 30.7% by 2027. These projections reflect Canada’s commitment to meeting climate goals and transitioning to a cleaner transportation system.
