Canada's EV Market Is Recovering — But Quebec Is Dragging the National Average Down

Canada's electric vehicle market is posting solid year-over-year gains, but the headline numbers hide a sharp provincial divide. According to new analysis from Electric Autonomy Canada, national EV sales are up more than 30 percent from 2025 and have consistently held 10 percent market share — yet the recovery isn't evenly distributed.

Quebec's outsized pull on national numbers

Quebec was responsible for 60 percent of all Canadian EV sales in 2024, when buyers could stack a $7,000 provincial incentive on top of the federal credit for $12,000 in total support. That pushed Quebec's EV market share to 42 percent in Q4 2024.

Today, with the provincial rebate capped at $2,000, Quebec's share has fallen to 18 percent. Because of Quebec's weight in the national total, its pullback drags the Canada-wide average down — masking the fact that most other provinces have already returned to, or exceeded, 2024 levels.

Where growth is actually happening

• British Columbia: resting at 20 percent market share, leading the country
• Ontario: set a quarterly ZEV sales record in Q2 with 16,913 units (7.4% share)
• Alberta: Q2 EV sales up 37 percent from 2024, reaching 4.7 percent market share

The tepid national recovery is mostly confined to Quebec. Elsewhere, the market is setting records.

Canada is now an affordable EV market

J.D. Power reported in June that the average transaction price for an EV in Canada has fallen to $49,500 — down 15 percent from 2025. There's now little price gap between EVs and comparable gasoline vehicles, even before incentives.

Three factors are driving this:

• The EVAP incentive's $50,000 price cap has pushed automakers to price under it
• Tesla's aggressive pricing on the Shanghai-built Model 3 has set a bar competitors must meet
• At least twelve models now sell under $40,000, up from just one (Fiat 500e) a year ago

The average Canadian EV is now roughly 36 percent cheaper than the average U.S. EV ($78,000 CAD equivalent), largely because the U.S. mix skews toward pricier Tesla, Rivian, and Cadillac models.

Why Q4 could sharpen the rebound

Historically, Q4 is Canada's strongest quarter for EV sales as 2027 model-year vehicles arrive in showrooms. The gas-price spike — now in its seventh month — has more buyers calculating long-term savings. The planned EVAP step-down to $4,000 in 2027 will drive deadline buying in December.

Chinese brands Omoda and Jaecoo, which have proven popular in Australia and the U.K., have announced anticipated Canadian arrivals in late 2026. While likely too late to move the 2026 needle significantly, they'll generate momentum into 2027.

Looking for EV deals, insurance, or financing? Check out our partner deals and offers.

If you found this guide helpful, use our Tesla referral link for free Supercharging credits on a new Tesla purchase or lease in Canada.