Electric vehicle sales in Canada have fallen sharply after federal and provincial governments cut rebate programs, according to new figures from Statistics Canada. Blacklock's Reporter says the first quarter of 2025 saw the steepest drop in zero-emission vehicle sales since pandemic lockdowns.StatsCan reported 37,299 new zero-emission vehicles were registered from January through March, making up 8.7% of all new vehicle registrations. That represents a 23% drop compared to the same period last year. .“New zero emission vehicle registrations experienced their first year over year decline since the start of the Covid-19 pandemic,” the agency said.The biggest decline was in Québec, where registrations fell 51% after the province suspended its rebate program from February 1 to March 31. Québec, which has historically accounted for more than half of Canada’s electric vehicle sales, previously offered a $7,000 rebate. The province has reduced the rebate to $4,000 and plans to phase it out entirely within three years.The downturn also followed the federal Department of Transport’s January 10 suspension of its $5,000 rebate. British Columbia ended its $4,000 rebate on May 15..At the same time, Environment Minister Julie Dabrusin said cabinet was considering adjustments to its electric vehicle mandates, which require 20% of new car sales to be electric by 2026, 60% by 2030, and 100% by 2035. “There are also flexibilities built within that regulation that if we wanted to have a larger conversation about, we could speak about,” Dabrusin told MPs.The figures reinforced warnings from industry representatives that aggressive sales targets cannot succeed without subsidies. “It makes no sense to get rid of the rebates,” said Daniel Breton, CEO of Electric Mobility Canada. “To me it is about policy predictability. You cannot plan like this. It doesn’t work.”Breton cited Ontario’s 2018 cancellation of a $14,000 rebate program, which led to an 80% drop in electric vehicle sales and forced dealers to export unsold cars out of province. “It was a disaster,” he said.Meanwhile, overall vehicle sales rose in the first quarter, with 426,872 new vehicles registered — up 2.9% from a year earlier. The biggest gains came from gas-powered vans, up 23%, and pickups, up 10%.
