Electric vehicle sales in Canada are on track to decline in 2025, just as the federal government prepares to enforce mandatory sales quotas for zero emission vehicles beginning next year, according to a new report from the Canada Energy Regulator.Blacklock's Reporter says the regulator’s Market Snapshot: Zero Emission Vehicles In Canada found that EV sales dropped 23% in the first quarter of 2025 compared to the same period in 2024, with market share falling to just 9%. The trend comes despite legislation requiring 20% of new vehicle sales in 2026 to be zero emission, with targets increasing to 60% by 2030 and 100% by 2035.“Weaker sales in 2025 are likely to be the case for a variety of reasons including current levels of economic uncertainty associated with tariffs, backlash against one of the top selling brands Tesla, as well as the recent pause, cancellation and wind down of incentive programs across Canada,” said the report..Battery electric vehicles made up just 1% of all road vehicles in Canada last year, according to Statistics Canada. Of the 25.7 million registered vehicles, only 327,732 were battery powered.Despite slowing demand, MPs voted 194-141 on June 17 to uphold the federal EV mandate. Conservatives had introduced a motion to repeal the policy, arguing it would increase vehicle prices and limit consumer choice.“Nobody is denying people the choice to drive an electric car,” said Conservative MP Melissa Lantsman. “What is wrong is the government mandating that everybody drive an electric car.”Liberal MP Wade Grant defended the policy, calling it an investment in the country’s long-term climate leadership. “This is about my children, my grandchildren, everybody’s children,” he said.Automakers are also pushing back, urging Ottawa to scrap the mandate. “Let the federal government’s existing emissions regulations drive cleaner transportation,” said Brian Kingston, CEO of the Canadian Vehicle Manufacturers’ Association.
