EV sales fell to 12,347 units in March, down from 22,390 the year prior.
Federal rebates ended in January; no replacements confirmed by the re-elected Liberal government.
Automakers cite incentives and infrastructure as barriers to meeting Canada’s ZEV sales mandates.
Electric vehicle sales in Canada fell 44.9 % year-over-year in March 2025, according to new data from Statistics Canada, marking the sharpest decline since the federal purchase rebate was suspended in January.
Automakers sold 12,347 zero-emission vehicles (ZEVs) during the month, compared to 22,390 in March 2024. ZEVs represented 6.5 % of all new motor vehicles sold in March, slightly below February’s 6.8 % share.
Transport Canada announced on Jan. 10 that the Incentives for Zero-Emission Vehicles (iZEV) program would “pause” ahead of its scheduled March 31 expiry. The program’s funding pool was exhausted by Jan. 13, and rebates have not been reissued since.
March’s decline follows a 41.3 % drop in ZEV sales in February, indicating a worsening trend in adoption since the removal of financial support for consumers.
The Canadian Vehicle Manufacturers’ Association said the abrupt end to rebates and a lack of nationwide charging infrastructure have led to what it called a collapse in sales. “EV sales have collapsed in Canada,” said CEO Brian Kingston. “The end of purchase incentives and the growing EV charging gap are the culprits.”
The sales downturn raises questions about Canada’s ability to meet its zero-emission vehicle sales targets, which are mandated by federal legislation. ZEVs are required to make up 20 % of new-vehicle sales by 2026, increasing to 60 % by 2030 and 100 % by 2035. Some provinces, including Quebec and British Columbia, have more aggressive adoption timelines. Both have also dabbled and made changes to their incentive programs recently.
Kingston warned that the mandates should be reconsidered in light of market realities. “The federal EV mandate needs to be scrapped before serious damage is done to the auto industry,” he said.
Prime Minister Mark Carney’s Liberal government, re-elected with a minority on April 28, has yet to confirm whether it will reinstate the $5,000 rebate. The party’s platform stated only that it would “look at ways” to bring the incentive back. The government has committed $1.5 billion over three years to expand EV charging infrastructure across the country.
Source: Automotive News Canada
