Hybrid Cars Canada: Why Hybrids Are Outselling EVs in 2025
Hybrid Cars Canada: Why Hybrids Are Outselling EVs in 2025
In 2025, hybrid cars Canada are making a strong comeback, with sales surpassing those of zero-emission vehicles (ZEVs) for the first time in years. According to S&P Global Mobility, hybrids captured about 13 percent of the market, while EVs accounted for only 9.5 percent. This shift in EV vs hybrid sales 2025 marks a reversal after years of electric vehicle dominance.
The Role of Electric Vehicle Incentives Canada
One key factor behind this change is the end of the $5,000 federal electric vehicle incentives, which previously encouraged many Canadians to buy electric cars. With the removal of these subsidies, consumers are looking for more affordable and practical options.
Best Hybrid Cars in Canada Leading the Way
The success of hybrids is largely driven by popular models such as the Honda CR-V Hybrid and Civic Hybrid, both produced in Ontario. In 2025, hybrids accounted for 58% of CR-V sales and 64% of Civic sales. Toyota is also pushing hybrids aggressively, with electrified vehicles making up nearly half of its Canadian sales. Starting in 2026, the Toyota RAV4 will feature a fully hybrid base powertrain.
Hybrid vs Electric Car Pros and Cons: What Buyers Consider
When comparing hybrid vs electric car pros and cons, hybrids offer a middle ground. They combine a gasoline engine with an electric motor, reducing range anxiety and dependency on charging stations—issues that still concern many Canadians. While EVs provide zero emissions and lower running costs, the practicality and affordability of hybrids continue to appeal to a broad range of buyers.
What’s Next for the Canadian Market?
Internal combustion engine vehicles still dominate with a 73% market share in 2025, but hybrids and EVs are steadily gaining ground. The federal government’s suspension of the 20% ZEV sales target for 2026 and the 60-day review of the mandate have introduced uncertainty, potentially slowing pure EV adoption and giving hybrids a larger role in the transition.
Quebec: The Exception
Quebec bucks the national trend, with pure electric vehicle sales slightly ahead of hybrids in the second quarter of 2025—holding an 11.8% market share compared to hybrids’ 9.4%.
Hybrid Cars Canada Gain Ground as Federal Incentives Shift
The growing interest in hybrid cars Canada reflects a practical response to changing policies and consumer preferences. As Canadians weigh hybrid vs electric car pros and cons, the future of clean transportation will depend heavily on federal decisions about electric vehicle incentives Canada and market support.