Canadian Electric Vehicle Market 2025: Key Trends and Challenges, According to Canadian Black Book Report
Canadian Electric Vehicle Market 2025: Key Trends and Challenges, According to Canadian Black Book Report
A new white paper from Canadian Black Book (CBB), titled “The Canadian Electric Vehicle Market in 2025,” provides a comprehensive analysis of Canada’s electric vehicle market and its evolving future. The report reveals that while EV adoption in Canada continues to face challenges, it is steadily progressing thanks to growing consumer interest and changing vehicle economics.
Daniel Ross, Senior Manager of Industry Insights at CBB, explains that the white paper is not just a snapshot of current conditions but a roadmap for Canada’s EV future. With countries like Norway and China leading in EV adoption, Canada’s progress remains slower, with the Canadian electric vehicle market holding just a 15.4% market share, but poised for growth as trends shift.
EV affordability in Canada is one of the report’s key themes. Since 2021, vehicle prices have surged by 27%, while the average price of electric vehicles has only risen by 13%. This has helped narrow the gap between EVs and gasoline vehicles, reducing the price difference from 36% to just 23%. The affordability of EVs in Canada has improved significantly, making them more accessible to consumers looking for alternative transportation options.
The used electric vehicle market in Canada is also showing signs of rapid expansion. CBB forecasts that by 2030, the supply of used electric vehicles will increase by nearly 800%. In contrast, the market share of internal combustion engine vehicles is expected to drop by 17.3%. This shift indicates a growing demand for pre-owned EVs as more consumers look to buy second-hand electric vehicles in Canada.
Canada’s EV Market
When it comes to Canada’s EV adoption rate, policy decisions will play a critical role. The report notes that the future of Canada’s EV market could change dramatically depending on whether zero-emission vehicle incentives are reinstated. CBB estimates that these policy shifts could increase Canada’s EV market by as much as 5.1% in 2025, which translates to over 94,000 additional units sold. Federal incentives are crucial in driving the adoption of zero-emission vehicles in Canada, and they will continue to influence growth in the coming years.
“We’re optimistic about the long-term potential of electric vehicles in Canada,” said Ross. “But to truly unlock that potential, it will require ongoing collaboration between governments and the auto industry.”
With growing demand for EVs, improving EV affordability in Canada, and expanding incentives, the Canadian electric vehicle market in 2025 is positioned for significant growth. The future of zero-emission vehicles in Canada depends largely on supportive policies and continued advancements in the electric vehicle sector.
