Canada’s EV sales are growing, but not fast enough: expert

New data from Statistics Canada shows a surge in electric vehicle (EV) sales in Canada, with a 55% increase in August 2026 compared to the same month last year. Robert Karwell, director of OEM solutions with JD Power, remarked that the growth was stronger than anticipated. EV sales now account for seven percent of the market, up two percentage points from the third quarter of 2026.

If plug-in hybrids and direct-to-consumer vehicles, such as Tesla, are included, that number increases to approximately ten percent. The Canadian government initially aimed to have 60% of new vehicles sold to be electric by 2030, with the target rising to 100% by 2035. However, the federal government recently revised its auto strategy, aiming for 75% of vehicles sold to be electric by 2035 and 90% by 2040.

Despite the recent growth, Karwell stated that Canada is still far from meeting these targets. "The data right now is telling us no," he said, emphasizing that while they are making progress, they are not on track. Karwell also noted that EVs are becoming more affordable, with their average price decreasing as technologies evolve.

Government incentives are helping to close the price gap, which currently stands at around $7,000 for EVs compared to $3,000 to $4,000 for hybrid vehicles. Hybrid vehicles make up about 17% of the market share and are particularly appealing to those who do not own homes with charging facilities. However, Karwell highlighted that charging infrastructure remains a challenge, with the government recently announcing $9 million for installing nearly 400 chargers across Canada.