Sales of zero-emission vehicles (ZEVs) in Canada continue to fall. In June 2025, 14,090 electric and plug-in hybrid vehicles were sold, a decrease of 35.2 percent compared to June 2024, according to Statistics Canada.
The decline comes despite a growing overall auto market: Canadians bought 177,313 new vehicles in June, an increase of 6.2 percent compared to last year.
See also: Sales of Zero-Emission Vehicles Fell in Canada in April
ZEV market share falls below 10 percent
In June, ZEVs accounted for 7.9 percent of total sales, down from 13 percent in 2024 and a far cry from the peak of nearly 20 percent reached in December 2024. The downward trend is explained by the elimination of the $5,000 federal EV incentives program in January 2025, and by the lapsing or adjustment of several provincial programs.
Automakers sound the alarm
For Steve Flamand, President and CEO of Hyundai Auto Canada, the situation is clear: “We are selling about half as many electric vehicles as in 2024. As long as there isn't a better balance between vehicle prices and the government's willingness to support electrification, it's going to remain difficult,” he told Automotive News Canada.
Consumers in waiting mode
The federal government has repeatedly promised since the April election to reinstate an incentive program for electric vehicle purchases, but no date has yet been announced. According to Cara Clairman, CEO of the organization Plug 'N Drive, the uncertainty is stalling the market: “If the rebate comes back in a month or two, it would be foolish to buy an EV now and lose out on $5,000 or a similar amount,” she said on the Automotive News Canada Podcast.
A recovery compromised without government support
Industry experts believe that a rapid recovery in EV sales in Canada is unlikely without intervention from Ottawa. For now, consumers are waiting, and automakers are struggling to adjust.