Canada’s shift towards zero-emission vehicles (ZEVs) accelerated in 2024, with new registrations reaching 15.4% of all new light-duty vehicles, up from 10.7% in 2023, according to data from S&P Global Mobility.
This 44.2% year-over-year growth underscores the country’s commitment to cleaner transportation. However, recent shifts in incentives and evolving market dynamics suggest that 2025 could present hurdles to continued expansion.
See also: Tesla Sales Drop in Canada Amid EV Incentive Cuts and Price Hikes
Quebec led the national transition, with ZEVs accounting for 32.9% of new registrations and an even higher 42% in the final quarter of 2024. The province’s robust adoption was driven by substantial financial incentives and a growing charging infrastructure.
However, a policy shift that reduced maximum rebates from C$7,000 to C$4,000 as of April 1, 2025, has already led to a steep 65% drop in battery electric vehicle (BEV) registrations in January 2025 compared to the previous month.
See also: Lucid Gravity SUV Now Available for Order in Canada, Starting at C$134,500
Other provinces showed varying levels of progress. British Columbia, traditionally a leader, recorded a ZEV adoption rate of 22.5% in Q4 2024, slightly down from 24.9% in Q3, while Ontario reached 9.6%, up from 9.0%.
Smaller provinces, including New Brunswick and Manitoba, saw notable increases, reflecting broader national growth. BEVs accounted for 11.4% of total registrations, growing 41.8% year-over-year, while plug-in hybrids and fuel cell electric vehicles contributed more modestly.
See also: Kia’s EV5 Set for Exclusive Launch in Canada, No Plans for US or Mexico in North America
Despite this momentum, policy uncertainty could impact future adoption. The federal iZEV program, which provided up to $5,000 in rebates, has been paused indefinitely after running out of funds. Quebec’s policy adjustments have already affected demand, and British Columbia is also experiencing slower ZEV growth.
Looking ahead, sustained government support, infrastructure expansion, and targeted incentives will be crucial in maintaining progress toward Canada’s 2035 target of 100% ZEV sales.