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Sales of Hybrids Stay Steady as EV Sales Drop by Half in Canada’s Third Quarter

Sales of plug-in hybrids (PHEVs) are holding steady in Canada, while those of EVs plummet. | Photo: D.Boshouwers
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Benoit Charette
Overall, the Canadian market remained stable in Q3 of 2025.

The growth of hybrid vehicles in Canada continued through the third quarter of 2025, even as the market for fully electric vehicles experienced a sharp decline across North America.

According to the latest data from Statistics Canada, gasoline-electric hybrids accounted for 12.4 percent of light-vehicle registrations between July and September 2025, up from 9.6 percent during the same period in 2024. This significant growth confirms sustained consumer interest in a powertrain perceived as more versatile and reassuring.

A globally stable market
A total of 484,415 vehicles were registered in Canada in the third quarter, virtually unchanged from the 483,588 total for 2024. In short, the market isn’t shrinking, but its makeup is changing, significantly.

EVs in sharp decline
The market share for battery electric vehicles (BEVs) plummeted to 5.5 percent, a drop of more than half compared to the 11.6 percent observed a year earlier. Industry specialists point to several factors to explain the marked slowdown, notably the end of federal incentives for zero-emission vehicles in January 2025, combined with concerns over costs and charging infrastructure.

The Toyota Prius Prime
The Toyota Prius Prime | Photo: D.Boshouwers

Plug-in hybrids hold steady
For their part, plug-in hybrids (PHEVs) proved relatively resilient. Their market share stood at 3.8 percent, compared to 4.1 percent in the third quarter of 2024. While this represents a slight decrease, it’s nowhere near the scale of the decline seen in 100-percent electric vehicles.

The resurgence of gasoline
In this context, gasoline-powered vehicles also regained ground. Registrations reached 357,638 units, accounting for 73.8 percent of the market — an increase from the 70.2 percent recorded the previous year.

These figures confirm that hybrids are establishing themselves as the most credible transitional solution for the short and medium term. By removing the total dependence on charging and avoiding range sacrifices, they better meet the climatic, geographical and economic constraints of the country than pure EVs—at least for the time being.

The Ford F-150 Raptor
The Ford F-150 Raptor | Photo: Ford
Benoit Charette
Benoit Charette
Automotive expert
  • More than 30 years of experience as an automotive journalist
  • More than 65 test drives last year
  • Attended more than 200 new vehicle launches in the presence of the brand's technical specialists