Canada’s ZEV sales fell 35.2% year-over-year in June to 14,090 units.
EVs accounted for 7.9% of total June sales, down from 13% last year.
Buyers and automakers await Ottawa’s promised return of $5,000 federal rebates.
Zero-emission vehicle (ZEV) sales in Canada fell by more than a third in June as federal rebates remained on hold and consumers delayed purchases. Sales of battery-electric and plug-in hybrid vehicles totalled 14,090 units, a 35.2% drop from June 2024, according to Statistics Canada.
ZEVs accounted for just 7.9% of all new vehicles sold during the month, down from 13% a year earlier and well below the high of nearly 20% recorded in December 2024. The figures mark the fifth straight monthly decline in ZEV uptake.
The federal government’s $5,000 rebate program for ZEV buyers expired in January 2025 and has not yet been replaced. While the government has repeatedly pledged to reinstate the program following the April election, it has not provided a timeline.
The sharp downturn in EV sales contrasts with gains in the broader market. Total vehicle sales in Canada rose 6.2% year-over-year in June, reaching 177,313 units across all segments. Assuming the rebate is not responsible for the setback would be irresponsible.
Steve Flamand, CEO of Hyundai Auto Canada, said the lack of support is impacting sales. “Until there’s a better balance between the transaction price and the government’s appetite to electrify, it’s going to be difficult,” he told Automotive News Canada. Hyundai is selling about half as many electric vehicles as it did in 2024.
Cara Clairman, CEO of advocacy group Plug ‘N Drive, said the uncertainty is discouraging buyers from entering the market. “If the rebate’s going to come back in a month, or two months, I would be stupid to buy a car now when I could get $5,000 — or something in that ballpark — off in a few months’ time,” she said on the Automotive News Canada Podcast.
Multiple provinces have also scaled back or paused their own rebate programs, further reducing financial incentives for consumers. Some provinces offered up to $12,000 in rebates and incentives at one point.
With no firm date for a new federal rebate, analysts say demand may remain low through the third quarter. It seems clear that the iZEV program’s requirement for EVs to represent at least 20% of all new vehicle sales in 2026 will fail without serious governmental support.
Source: Automotive News
