Quebec will scale back its plan to phase out gasoline-powered vehicles entirely by 2035, instead setting a target for 90% of new light-duty vehicle sales to be zero-emission vehicles (ZEVs). The move comes as electric vehicle adoption slows across Canada, affected by rising prices and the expiration of incentive programs.
Under the revised policy, plug-in hybrid vehicles (PHEVs) and battery-electric vehicles (BEVs) will qualify fully toward compliance, while conventional hybrids will receive partial credit. The change leaves room for conventional or hybrid vehicles in the remaining 10% of sales.
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Environment Minister Bernard Drainville said the adjustment reflects evolving market conditions and economic considerations. He noted, “The world has changed, and Quebec must adapt. My priority is to find the right balance between protecting the environment and economic development. Quebec consumers will benefit from this, as they will have a wider choice of electric and hybrid vehicles.”
The policy shift follows weaker-than-expected ZEV uptake in Canada. ZEVs accounted for 9.2% of new light-vehicle registrations in the second quarter of 2025, down from 9.7% in the first quarter. Although total ZEV volumes increased by 25.6% quarter-over-quarter, they lagged behind the broader auto market, which grew by 32.3%, highlighting a slowdown in adoption.
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Quebec, historically the national leader in EV uptake, also experienced a sharp decline. Its ZEV market share fell from a record 42% in the fourth quarter of 2024 to 11.8% in the second quarter of 2025. Analysts attributed the decline to the temporary reduction of provincial incentives from $7,000 to $4,000 per qualifying vehicle, as well as a suspension of the federal iZEV rebate program.
At the national level, the federal government has also paused its 2026 ZEV mandate, which had required 20% of new sales to be electric. While the 2035 goal technically remains, declining adoption and limited incentives have raised questions about whether it can be realistically achieved.
Source: DriveTeslaCanada