Canadian Car Shoppers Embrace EVs at Record-Breaking Pace

Canadian Car Shoppers Embrace EVs at Record-Breaking Pace

Posted on February 15, 2025

While global demand for all-electric vehicles (EVs) has faced challenges, Canada is setting itself apart with a surge in EV purchases. Unlike regions such as the U.S. and Europe, where slower-than-expected adoption has prompted automakers to reconsider their EV strategies, Canadian car shoppers are enthusiastically leveraging robust federal incentives. These incentives, under the Incentives for Zero-Emission Vehicles (iZEV) program, have made EVs and plug-in hybrids (PHEVs) an attractive choice for environmentally conscious buyers.

In November alone, 23,713 Canadian car buyers utilized the iZEV program to secure rebates, closely following October’s record of 23,923. To date in 2024, a remarkable 193,308 buyers have taken advantage of this program. Eligible vehicles must meet specific criteria, including price thresholds. For passenger cars, the base price must be under $55,000, with higher trims eligible if priced under $65,000. Pickups, SUVs, and minivans must have base prices below $60,000, with certain variants qualifying up to $70,000. Fully-electric vehicles and PHEVs with an electric range over 49 kilometers qualify for a $5,000 rebate, while shorter-range PHEVs are eligible for $2,500.

Among brands benefiting most from these rebates, Tesla leads with 37,721 credits issued this year, followed by Hyundai (25,656), Toyota (22,467), Ford (19,357), and Chevrolet (18,828). These figures underscore the growing appeal of EVs across a diverse range of manufacturers. As automakers continue to expand their EV offerings, Canadian buyers seem eager to embrace the transition away from internal combustion engines.

However, this momentum may face a significant milestone soon. The iZEV program, launched in 2019, is currently slated to expire by March 2025 unless renewed. Since its inception, the initiative has facilitated the purchase of over 500,000 EVs and PHEVs, playing a pivotal role in driving Canada’s transition to sustainable transportation. With time ticking on this valuable incentive, many Canadians are seizing the opportunity to make the switch to cleaner, more efficient vehicles.