March 2026 EV Sales in Canada Jump 74.7% From One Year Earlier, as Chinese EVs Arrive

On May 14, 2026, Canada’s government reported that Canada recorded 176,500 new motor vehicle sales in March 2026, down 6.6% compared with March 2025. In dollar terms, new vehicle sales declined 3.6% year over year.

New passenger car sales fell 4.3% during the month, while new truck sales declined 6.9% from a year earlier.

Despite the broader slowdown in the automotive market, zero-emission vehicle (ZEV) sales surged. Canadians purchased 21,574 new ZEVs in March, representing a 74.7% increase year over year.

ZEVs accounted for 12.2% of all new vehicle sales in March 2026, nearly doubling their market share from 6.5% in March 2025.

Electric Autonomy Canada reported that zero-emission vehicles accounted for 11.2% of new vehicle registrations in Canada during the fourth quarter of 2025, according to new data from Statistics Canada. The figure marked an increase from the 9.7% market share recorded in the third quarter, although total ZEV sales volume declined alongside a broader slowdown in overall vehicle registrations.

Canada recorded 46,170 ZEV registrations in Q4 out of 411,663 total new vehicle registrations, compared with 47,222 ZEV registrations out of 486,283 total registrations in Q3.

Battery electric vehicles drove most of the growth in market share. BEVs increased from 5.9% market share in Q3 to 7.4% in Q4, while registrations climbed from 28,648 to 30,464 units.

Plug-in hybrid electric vehicle registrations declined quarter over quarter, falling from 18,574 units in Q3 to 15,706 in Q4. However, because overall vehicle sales also dropped, PHEV market share remained steady at 3.8%.

On a yearly basis, Canada’s ZEV market experienced a sharp decline. Total ZEV registrations fell 44.7% in 2025 compared with 2024, while ZEV market share dropped from 14.6% at the end of 2024 to 9.5% by the end of 2025.

Analysts attributed much of the decline to a surge in EV purchases late in 2024 as consumers rushed to buy vehicles before Canada’s Incentives for Zero-Emission Vehicles program ended.

Canada has since launched a new Electric Vehicle Affordability Program offering rebates of $5,000 for BEVs and $2,500 for PHEVs for eligible purchases dating back to February 16.

Chinese EVs Are Coming to Canada, Some Dealers Can’t Wait to Sell Them

On May 15, 2026, CNBC reported Canadian auto dealer Michael MacGillivray believes the arrival of Chinese electric vehicles in Canada could significantly reshape the country’s automotive market.

MacGillivray, CEO of Century Auto Group and Sigma Auto Group, oversees 10 dealerships across Nova Scotia and New Brunswick and is working to become one of the first Canadian dealers to sell imported Chinese EVs. In April, he traveled to the Beijing Auto Show alongside other Canadian dealers to meet with Chinese automakers and evaluate vehicles that could eventually enter the Canadian market.

MacGillivray said he was highly impressed by the quality, design, and driving experience of the vehicles he saw in China.

“Their materials are second to none. Their styling is impressive. The ride is very impressive,” MacGillivray said to CNBC.

Canada’s decision to allow limited imports of Chinese-made EVs has generated mixed reactions across the automotive industry and political circles.

The Canadian Vehicle Manufacturers’ Association described the move as deeply concerning, while U.S. officials sharply criticized the policy.

Under the current policy, Canada will permit up to 49,000 Chinese-made EVs annually at a reduced tariff rate of 6.1%, far lower than the 100% tariff applied to most other Chinese vehicle imports.

The lower tariff structure has already sparked strong interest among Canadian dealerships. Farid Ahmad, CEO of Toronto-area dealership broker DSMA, said the company received nearly 400 inquiries from dealers interested in representing Chinese brands including BYD, Geely, and Chery.

Industry analysts said the limited import cap would likely allow Chinese automakers to establish an initial foothold in Canada without dramatically disrupting the broader market. According to S&P Global Mobility, the permitted volume would represent roughly 3% to 5% of the Canadian auto market.

Many Canadian consumers interviewed by CNBC expressed curiosity and optimism about the arrival of lower-cost Chinese EVs, particularly as fuel prices remain elevated and demand for affordable electric transportation continues growing.