Canada broke its electric vehicle market in 2025 and it did so alone - Clean Energy Canada

The article from Clean Energy Canada highlights that, contrary to global trends, Canada’s electric vehicle (EV) market experienced a significant downturn in 2025, making it an outlier compared to robust EV sales growth worldwide. While global EV sales increased substantially—22% in China, 32% in Europe, and 48% in other regions—North America saw only a 4% increase, with Canada’s sales actually declining to levels seen in 2022. This decline is attributed not to a loss of consumer interest but to recent federal policy decisions that have collectively disrupted the Canadian EV market. Key factors contributing to this downturn include Canada’s imposition of a 100% tariff on Chinese EVs to align with U.S. trade policies, effectively shutting out a significant portion of affordable EV options available in other markets. Additionally, the federal EV rebate program ran out of funds and lacked clarity about its future, leaving potential buyers hesitant to purchase without guaranteed incentives. Furthermore, the federal government paused the