March 2026 marked a significant jump in Canada’s electric vehicle market, with 21,574 new zero-emission vehicles (ZEVs) sold, a 74.7 per cent increase compared to March 2025. ZEVs now account for 12.2 per cent of new vehicle sales, up from 6.5 per cent last year, highlighting growing consumer interest. These vehicles include fully electric and plug-in hybrid models.
Industry experts attribute the surge to rising gas prices, renewed federal incentives, and increasing consumer confidence as more Canadians see neighbours driving EVs. In February, the federal government launched a five-year program offering rebates up to $5,000, including for hybrids, fueling demand.
Despite Honda’s recent pause on a $15-billion EV facility in Ontario, other projects, such as Volkswagen and PowerCo’s battery cell gigafactory in St. Thomas, are nearing production, set for 2027. Canada has also opened the market to 49,000 Chinese-built EVs initially, rising to 70,000 annually by 2030. Analysts note that expanding reliable charging infrastructure remains a key challenge to further growth. Meanwhile, overall new passenger car sales fell 4.3 per cent, and new truck sales dropped 6.9 per cent year-over-year in March.
