EV sales surge as gas prices stay high, incentives return

Electric vehicle sales are accelerating across Canada, driven by high gas prices and renewed government incentives that made EVs more price-competitive with gas-powered cars.

Canadians bought 8,672 new EVs in January 2026, according to Statistics Canada data. Sales climbed to 12,547 in February and peaked at 21,574 in March before dipping to 17,795 in April. Taken together, EV sales in the first four months of 2026 were up 20.8 per cent compared to the same period in 2025.

The rebound follows a sluggish 2025 after the federal government cancelled its first EV incentive program. Monthly sales never cratered, but they fell well below the 20,000-plus units Canadians routinely bought each month in 2024 when incentives were in place. Some EV infrastructure projects were put on hold—Honda suspended a $15-billion electric vehicle complex indefinitely last month.

The government reintroduced incentives in February, offering up to $5,000 off the price of a fully electric vehicle and up to $2,500 off a hybrid, as long as the vehicles are made in Canada or in a country with which Canada has a free trade agreement. Those incentives made EV prices more comparable to gas-powered vehicles, drawing more consumers back in recent months.

Fuel costs jumped in late February after the U.S. and Israel launched strikes on Iran, restricting tanker traffic through the Strait of Hormuz. Canadian pump prices have eased from recent highs, but the national average was still $1.63 a litre as of mid-June—24.1 cents higher than last year's average. Industry analysts say affordability is driving the renewed interest, as consumers do the math on fuel costs versus EV savings. A J.D. Power survey found that 34 per cent of new-car shoppers were somewhat or very likely to buy an EV as their next vehicle, up from 28 per cent the year before.