A combination of soaring fuel prices and renewed government incentives is pushing more Canadians to seriously consider electric vehicles, with new data suggesting the shift toward EVs is gaining momentum faster than expected.
According to Statistics Canada, zero-emission vehicles accounted for 10.2 per cent of all new vehicle sales in February, a sharp increase from 6.9 per cent during the same month last year. The jump followed the relaunch of the federal Electric Vehicle Affordability Program, which offers rebates of up to $5,000 on eligible battery-electric and fuel-cell vehicles, and $2,500 for qualifying plug-in hybrids.
Industry analysts say the recent spike in gasoline prices linked to conflict in Iran has added another powerful reason for buyers to reconsider gas-powered vehicles. As pump prices surged in March, online searches for EVs climbed dramatically.
AutoTrader.ca reported that EV search activity rose five per cent in late February and then jumped 33 per cent in March as fuel costs climbed. The company also said new EV sales on its platform were up 33 per cent in March compared with the same period a year earlier, while used EV sales also posted notable gains.
Baris Akyurek, vice-president of insights and intelligence at AutoTrader, said Canadians have shown similar behaviour before. During the 2022 energy price spike triggered by the war in Ukraine, consumers also turned to EVs as a hedge against rising gasoline costs.
One of the most surprising findings from AutoTrader’s latest consumer survey was growing openness to Chinese-made electric vehicles. Among respondents interested in purchasing an EV, 53 per cent said they would consider a Chinese brand.
That could become significant as major Chinese automakers such as BYD, Chery and Geely are reportedly preparing to enter the Canadian market later this year.
Analysts believe their arrival could intensify competition and bring lower prices across the EV market. Some forecasts suggest Canadians may begin seeing electric vehicles priced near $35,000 by 2027, making them more accessible to mainstream buyers.
Established brands already producing EVs in China — including Tesla, Volvo and Polestar — are also contributing to increased supply.
For many Canadian households, the decision is no longer just about the environment. It is increasingly about affordability, fuel savings and long-term protection from volatile gasoline prices. If current trends continue, 2026 could mark a major turning point in Canada’s transition to electric transportation.