Battery-electric vehicle registrations in Canada fell 43% in 2025 to 115,049 units, down from 202,103 in 2024, primarily due to reductions in vehicle-purchase incentive programs, while hybrid registrations surged 36% as consumers sought more affordable alternatives.
- EV registrations dropped 43% in 2025, falling from 202,103 to 115,049 units across Canada
- Hybrid sales jumped 36%, rising from 169,090 to 230,081 registrations, showing consumer preference for fuel efficiency without full electrification
- Zero-emission vehicles fell from 14.6% to 9.32% of total new registrations in 2025
- Quebec saw the steepest decline with zero-emission registrations falling 49% and market share dropping from 31.8% to 16.67%
- Incentive program cuts in early 2025 were the primary driver of the EV market collapse, according to the Canadian Automobile Dealers Association
Battery-electric vehicle registrations in Canada fell 43% in 2025 as hybrid registrations rose 36%, according to a new report from the Canadian Automobile Dealers Association.
The organization recorded 115,049 battery-electric registrations in its 2025 CADA Data Report, down from 202,103 in 2024.
Plug-in hybrid registrations declined 9.8%, falling from 68,882 to 62,165.
Hybrid-electric registrations rose from 169,090 to 230,081. Gasoline registrations increased 2.9% to 1,372,322, while diesel registrations rose 9.4% to 87,244.
“The increasingly volatile commercial and trade environment has introduced new uncertainty for dealers, manufacturers and consumers alike,” said Tim Reuss, president and CEO of CADA.
In total, zero-emission vehicles accounted for 9.32% of new registrations in 2025, down from 14.6% in 2024 and 10.8% in 2023.
CADA linked the decline to reductions and cancellations affecting vehicle-purchase incentive programs during the opening months of 2025. The report said hybrid growth suggested buyers remained interested in reducing fuel use while balancing affordability, charging concerns and daily driving needs.
“Reliable market data helps businesses adapt, informs policymakers and highlights the significant economic contribution made by Canada’s franchised new-vehicle dealers.”
Quebec recorded the largest decline among the three provinces detailed in the report. Zero-emission vehicle registrations in Quebec fell 49% from 147,507 to 75,364. Their share of provincial registrations dropped from 31.8% to 16.67%.
British Columbia registrations fell 21.2% from 45,566 to 35,920. The province’s zero-emission vehicle share declined from 21.8% to 16.9%.
Ontario registrations decreased 17.6% from 56,870 to 46,851. Market share slipped from 7.6% to 7%.
The average amount financed for a new vehicle increased from $55,703 in 2024 to $57,981 in 2025. It has risen by more than $11,000 since 2020, when the average stood at $46,965.
The average interest rate declined from 5.05% to 4.67%, while the average loan term shortened from 65 to 64 months. Leasing increased from 27.2% to 28.81% of new vehicles.
Canadian dealers sold 1,897,055 new vehicles in 2025, up 2% from the previous year.
Passenger-car registrations fell 6.9% to 234,934. Van registrations increased 20.6% to 82,604, while multipurpose vehicle registrations rose to 1.18 million. Pickup registrations were nearly unchanged at 369,133.
The report incorporates data from Statistics Canada, J.D. Power, NCM Associates, Canadian Black Book, DesRosiers Automotive Consultants and MNP.
