Electric Vehicle sales tank without government handouts

EV sales in Canada have crashed as scrapped rebates, widespread store closures, and bankruptcies demolish Ottawa’s foolish EV mandates, mocked by market realities.

Tamara Ugolini
  |   June 13, 2025   |   News   |   1 Comment

 

New electric vehicle (EV) sales in Canada have tanked, marking the steepest decline since the COVID-19 lockdowns, as reported by Blacklock’s. Yesterday's Statistics Canada report lays bare the impact of axed taxpayer-funded rebates, showing how Ottawa’s ambitious EV mandate was never feasible.

“New zero-emission vehicle registrations experience first year-over-year decline since the start of the COVID-19 pandemic,” the report reads.

In the first quarter of 2025, just 37,299 new zero-emission vehicles (ZEVs) were registered, accounting for a mere 8.7% of total new vehicle registrations—a staggering 23% drop from the same period last year. The report, New Motor Vehicle Registrations First Quarter 2025, points to Québec as the epicentre of the collapse, with a 51% plunge in ZEV registrations.

This crash coincided with the province’s suspension of its EV subsidy program earlier this year, including a general phasing out of the subsidy entirely by 2027.

Though Québec was historically a leader in EV adoption, with 54% of Canada’s total ZEV registrations last year, it is no longer the green darling it once was.

The federal government’s January decision to suspend its zero-emission vehicle incentive program (iZEV), coupled with British Columbia’s halt of its $4,000 rebate last month, has further fueled the downturn.

Environment Minister Julie Dabrusin, speaking in the House of Commons on Monday, hinted at “flexibilities” in the government’s EV sales mandates, which demand 20% of new vehicle sales be electric by 2026, 60% by 2030, and 100% by 2035. “The regulation remains in place,” Dabrusin said, though she admitted cabinet is “monitoring” the situation.

The government’s wavering stance points to a desperate attempt to align ambitious EV mandates with harsh market realities, particularly as VinFast shutters half its Canadian stores and Quebec’s $270 million Northvolt investment collapses amid the Swedish parent company’s bankruptcy.

Meanwhile, gas-powered vehicles are roaring back. StatsCan reported a 2.9% increase in total new vehicle registrations, reaching 426,872 in the first quarter of 2025. Gas-powered vans surged 23% year-over-year, with pickups climbing 10%, highlighting a clear consumer pivot away from EVs.

The data paints a stark picture: without sustained subsidies, Canada’s EV market is stalling. As Ottawa clings to its 2035 vision of a fully electric future, one wonders if policymakers are ignoring the signals from consumers and dealers alike.

Will the government double down on mandates or heed the market’s warning?

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Tamara Ugolini

Senior Editor

Tamara Ugolini is an informed choice advocate turned journalist whose journey into motherhood sparked her passion for parental rights and the importance of true informed consent. She critically examines the shortcomings of "Big Policy" and its impact on individuals, while challenging mainstream narratives to empower others in their decision-making.

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  • Bruce Atchison
    commented 2025-06-13 20:43:15 -0400
    Let’s hope that the cancellation of incentives for EVs in Quebec spreads around the world. This stupid Liberal government, which easterners voted for, is bound and determined to push this green scam on everybody. Fossil fuel vehicles are far superior. Battery power is second-hand energy where combustion is first generation. No energy is required except of course for the spark.