Full Breakdown
Canada’s Electric-Vehicle Sales Surge Yet Fall Short of Government Targets
By Drooid · · How we work
Rapid Growth in Q3 2026
Statistics Canada data show EV purchases rose 55 percent in August 2026 compared with the same month a year earlier. JD Power’s analysis of dealer data indicates a two-percentage-point increase in EV market share during the third quarter of 2026, bringing the share to 7 percent of all new vehicle sales. When plug-in hybrids and direct-to-consumer models such as Tesla are included, the share climbs to roughly 10 percent. Hybrid models alone account for about 17 percent of the market.
Government Targets and Policy Shifts
The federal government originally aimed for 60 percent of new vehicle sales to be electric by 2030 and 100 percent by 2035. In February 2026 the national auto strategy was revised, repealing the 2023 standards and setting new goals of 75 percent electric sales by 2035 and 90 percent by 2040. To support infrastructure, the government announced a $9 million program to install nearly 400 public chargers across Canada.
Market Trends and Pricing
Average vehicle prices are rising by about 1.5 percent, yet EVs are becoming cheaper on a per-vehicle basis. The price gap between a typical EV and a comparable gasoline model is currently around $7,000, while hybrids are $3,000-$4,000 cheaper than gasoline equivalents. Robert Karwel notes that many Canadians are choosing hybrids as an intermediate option, especially those without home-charging capability, citing high housing costs as a barrier to private charging.
Official Statements & Responses
He expects continued growth as vehicle costs decline and government incentives narrow the price gap. Karwel also highlighted charging-infrastructure constraints as a persistent obstacle to full EV adoption.
Verbatim Quotes
- “It’s a little bit surprising, a little stronger than we would have expected,” — Robert Karwel, director of OEM solutions with JD Power
- “Vehicles, on average, are getting more expensive by about one and a half percent,” — Robert Karwel, director of OEM solutions with JD Power
- “A lot of Canadians have voted with their feet and their wallets and are purchasing a hybrid vehicle as kind of another option amongst electrified vehicles amongst alternative power trains,” — Robert Karwel, director of OEM solutions with JD Power