At a time when 25 per cent of all vehicles sold around the world are electric, according to another publication, Canada can’t even break 10 per cent.

Statistics Canada released vehicle registration data for the third quarter of 2025, and the picture for zero-emission vehicles (ZEVs) isn’t pretty in this country.

During the third quarter of 2025, 9.4 per cent of all light-duty vehicle registrations were ZEVs. This follows a second quarter when just 8.6 per cent were ZEVs, and the first quarter with 8.7 per cent.

That’s a reversal from recent gains as 2024 finished with a ZEV market share of 13.8 per cent. The third quarter of 2024 had a ZEV market share of 15.7 per cent.

More than half of all the ZEVs sold in 2024 (53.9 per cent) were sold in Quebec. The province, at the time, was offering a rebate of up to $7,000 for ZEV purchases.

What are zero-emission vehicles?

ZEVs include battery-electric vehicles (BEV), fuel cell electric vehicles (FCEV), and plug-in hybrid electric vehicles (PHEV).

Hydrogen-powered FCEVs were never likely to be big sellers in Canada, but BEV and PHEV sales had been growing in recent years until Canada discontinued its ZEV rebate, as did British Columbia, and Quebec reduced the amount it offers.

Compared to Q3 2024, Q3 2025 saw BEV registrations fall by 52.3 per cent and PHEV registrations by 5.2 per cent.

Self-charging hybrids (the kinds that don’t plug in) increased in sales volume by 29.3 per cent from Q3 2024 to Q3 2025.

ZEV sales declines by province

Nationwide, ZEV registrations dropped by 40.1 per cent in the third quarter of 2025 compared to the same period in 2024.

StatCan data shows which provinces saw the biggest ZEV declines from Q3 2024 to Q3 2025.

They are:

• Quebec – down 45.7 per cent
• New Brunswick – 39.9 per cent
• Prince Edward Island – down 36.9 per cent
• British Columbia – down 35.6 per cent
• Ontario – down 33.7 per cent
• Manitoba – down 22.1 per cent
• Saskatchewan – down 21.5 per cent
• Nova Scotia – down 16.2 per cent

Canada’s ZEV mandates under review

The Canadian Automobile Dealers Association is lobbying the Canadian government to drop its ZEV sales mandates.

Canada’s plan had been to require ZEVs to make up a minimum of 20 per cent of all light-duty vehicle sales in 2026, with that rate growing every year until 2035 at which time internal combustion engine light-duty vehicles would be banned.

The 2026 mandate of 20 per cent has been put on hold and the rest of the ZEV mandate schedule is under review.

The European Union is planning to scrap its total ban all ICE cars by 2035; however, the updated mandates will still require most vehicles to be ZEVs, while allowing some range-extended EVs and PHEVs to also be sold as well.

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