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Renewable Resource: ZEV sales climb 56% as Canadian market rebounds

Zogby

Canadian zero-emission vehicle sales have climbed sharply from last year's lows, with more than one in 10 new vehicles sold in June capable of running without tailpipe emissions.

Statistics Canada recorded 21,876 zero-emission vehicle sales during the month, up 56.1% from 14,014 in June 2025. The category accounted for 11.5% of all new vehicles sold in Canada, up from 7.9% a year earlier.

The figures include battery-electric and plug-in hybrid vehicles.

The increase comes four months after Ottawa restored federal incentives for electric vehicle buyers under its new Electric Vehicle Affordability Program.

Prime Minister Mark Carney announced the $2.3-billion program in February as part of a wider change in federal automotive policy. Buyers can receive up to $5,000 toward an eligible battery-electric or fuel-cell vehicle and up to $2,500 for a plug-in hybrid.

The incentives generally apply to vehicles with a final transaction value of no more than $50,000, although Canadian-built vehicles are exempt from that limit.

"To support the Canadian auto industry, this $50,000 cap will not apply to Canadian-made EVs and plug-in hybrids," Carney said when announcing the program.

The June results mark a significant change from 2025, when ZEV sales fell after federal and provincial purchase incentives were reduced or suspended.

Canadians bought 169,972 zero-emission vehicles in 2025, down 35.7% from the previous year. Their share of the new vehicle market fell to 8.7%, compared with 13.8% in 2024.

Federal officials acknowledged the effect of those policy changes in a March emissions progress report, writing that ZEV demand had fallen following the pause or elimination of federal and provincial incentive programs, alongside other changes affecting the North American market.

Ottawa began offering the new incentives on Feb. 16.

June's increase also came as Canadians bought more new vehicles generally. Statistics Canada recorded 190,167 new vehicle sales during the month, up 7.3% from June 2025.

Zero-emission vehicle sales therefore grew considerably faster than the overall market.

The June total remains below the highs recorded before the previous incentive program ended. Canadians bought more than 30,000 ZEVs in September 2024, when the vehicles represented 18.2% of all new vehicle sales.

For collision repair facilities, however, the latest figures point to renewed growth in the number of battery-electric and plug-in hybrid vehicles entering the Canadian fleet after last year's decline.

Those vehicles can bring different repair requirements, including high-voltage safety procedures and, depending on the vehicle and damage involved, additional training, tooling and repair procedures.

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