Here's why electric vehicle sales have dropped across Canada for the third year in row
A new survey from AutoTrader shows electric vehicle sales have dropped for the third year in a row.
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According to the data, interest in electric vehicles has continued to drop since 2022 and the ongoing threat of U.S. President Donald Trump's tariffs has contributed to the downward trend. Consumers have raised concerns over reduced government incentives, the lack of electric vehicle infrastructure, and cost, the survey said.
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Baris Akyurek, vice-president of insights and intelligence at AutoTrader, said the main reasons consumers are hesitating to purchase an electric vehicle has not changed in the last three years. Akyurek said 78 per cent of those surveyed raised concerns about the limited range of electric vehicles.
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The second-highest concern, according to 69 per cent of those surveyed, is how expensive electric vehicles are. Akyurek said when AutoTrader assessed the models of various electric vehicles and prices, the cost for an electric vehicle compared to non-electric was 15 to 20 per cent higher.
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Year-over-year cost of an electric vehicle has declined, making electric vehicles more affordable, according to AutoTrader.
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The survey said in 2025, 42 per cent of Canadians are considering an electric vehicle for their next vehicle, down from 46 per cent in 2024. Only 29 per cent of Canadians said they would exclusively consider going electric, down from 40 per cent in 2024.
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The ongoing threat of Trump's tariffs has contributed to a lot of activity in the market, Akyurek said. More than ever, he said, government incentives are needed to push Canadians to go electric.
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'Incentives are a big part,' Akyurek said.
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'Removing the government incentive from the equation … essentially makes EVs more expensive. The federal incentive program helped consumers with their purchases.'
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In January, the federal government paused its electric vehicle rebate program. The rebate offered up to $5,000 for zero-emission passenger vehicles.
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The survey said 68 per cent of non-electric vehicle owners who would consider buying an electric vehicle believed they could be influenced if there were government incentives. Over half of respondents said incentives increased their confidence in purchasing an electric vehicle.
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