Canadians bought 13,920 electric and plug-in hybrid vehicles in July 2025, a decrease of 33.7 percent compared to July 2024, according to data from Statistics Canada.
That marks a sixth consecutive month of decline for zero-emission vehicle (ZEV) sales since the abrupt end of the $5,000 federal iZEV incentive program in January.
A growing automotive market - except for EVs
While overall, new vehicle sales in Canada grew by 4.7 percent in July, with 179,814 units sold, the market share for ZEVs remained stable at 7.7 percent. ‘Stable’ sounds good, but this is a far cry from the peak of nearly 20 percent reached in December 2024, just before the end of the incentives.
Provinces also pulling back
In addition to the end of the federal iZEV program, several provinces have suspended their own incentive programs, including British Columbia and some Maritime provinces. This situation has amplified the slowdown in sales of electrified vehicles.
Ottawa slow to eliminate uncertainty
According to Tim Reuss, president of the Canadian Automobile Dealers Association (CADA), Ottawa's repeated statements about a possible return of the iZEV program have helped paralyze the market. “Consumers are waiting for a new rebate before buying,” he said on the Automotive News Canada podcast on September 11.
The federal government is studying a possible relaunch of the program but is considering modifying the eligibility criteria, which is prolonging the uncertainty for buyers and dealers.