Canada's Zero-Emission Vehicle Sales Surge 47.2% YoY in February, Reaching 10.2% Market Penetration

According to Statistics Canada, sales of zero-emission vehicles (ZEVs) in Canada reached 12,626 units in February 2025, a year-over-year increase of 47.2%, spanning all vehicle categories. Total new vehicle sales for the month stood at 124,004 units, down 0.9% compared to the same period last year. On February 16, the Canadian federal government reinstated its vehicle purchase incentive program, launching the Electric Vehicle Affordability Program (EVAP). Under this program, battery electric vehicles (BEVs) are eligible for subsidies of up to CAD 5,000, while plug-in hybrid electric vehicles (PHEVs) can receive up to CAD 2,500. The policy, which had been suspended for over a year, will see subsidy amounts gradually reduced annually and is scheduled to end by the close of 2031. Spurred by the new policy—even though the incentives applied for only two weeks in February—the ZEV market penetration rate rose to 10.2%, up from 6.9% in February 2024. Previously, this penetration rate had peaked at 18.3% in December 2024.