Market Snapshot: Record-high electric vehicle sales in Canada

Release date: 2022-10-26

Electric vehicle (EV) sales are increasing in Canada and across the world.^Footnote 1 A record 86,032 electric vehicles were registered in Canada in 2021, making up 5.3% of total vehicle registrations for that year. In comparison, there were 56,165 electric vehicles registrations (2.9% of total registrations) in 2019 and 19,696 (1% of total registrations) in 2017. The first quarter of 2022 saw the highest EV quarterly registrations on record,^Footnote 2 at 26,018 (7.7% of total registrations for the period). Battery electric vehicles (BEVs) make up roughly 75% of new electric vehicle registrations, with the rest going to plug-in hybrid electric vehicles (PHEV). See Table 1 for a description of the different vehicle types.

Figure 1: Share of electric vehicle in total new vehicle registrations

In 2021, most new electric vehicles were registered in Canada’s three most populous provinces. 43% of new electric vehicles were registered in Quebec, 28% in British Columbia, and 23% in Ontario.

The sharp increase in new electric vehicle registrations contrasts with a 19% decline in total new registrations from 2017 to 2021. New registrations of non-electric vehicles (all categories except battery electric and plug-in hybrid electric vehicles) fell 23% over the same period. This decline is likely due to many factors that negatively impacted supply or demand of new vehicles. These include an increase in retail sales of used cars,^Footnote 3 reduced demand for transportation during the COVID-19 pandemic,^Footnote 4 low inventories of new vehicles available for sale,^Footnote 5 and growing electric vehicle market share.

Figure 2: New vehicle registrations by region and fuel type^Footnote 6

Every year, more electric vehicle models reach mass market, and they are becoming more competitive in markets still dominated by internal combustion engine (ICE) vehicles. Car manufacturers are adapting to consumers’ growing preference for larger vehicles^Footnote 7 by developing new, larger electric vehicles^Footnote 8. As a result, registrations of large electric vehicles outpaced electric passenger cars for the first time in 2021, and the trend is likely to continue.

Figure 3: New electric vehicle registrations by vehicle type

Aside from an increasing number of electric vehicle models^Footnote 9 across vehicle types, many factors can help explain the growing market share of electric vehicles. These include increasing range between vehicle charging,^Footnote 10 better charging infrastructure,^Footnote 11 competitive fuel economy and cost,^Footnote 12 lower greenhouse gas emissions,^Footnote 13 lower maintenance cost,^Footnote 14 and government incentives.^Footnote 15 A recent survey^Footnote 16 by Ernst & Young indicates that 46% of respondents are planning to purchase an electric vehicle instead of an internal combustion engine vehicle for their next purchase.

The Government of Canada is setting a mandatory target^Footnote 17 for all new passenger cars and trucks sales to be zero-emission by 2035, accelerating Canada’s previous goal of 100% of sales by 2040. The mandate also includes fuel cell electric (hydrogen) powered vehicles.^Footnote 18

Table 1: Vehicle type definitions^Footnote 19

Date modified:

2024-02-12