Business · Companies · 4 hrs ago
Canada’s EV sales rise, but remain off pace for federal targets
Electric vehicle sales in Canada rose 55% in August compared with the same month in 2025, according to Statistics Canada data.
In the third quarter, electric vehicles made up 7% of the market, or about 10% when plug-in hybrids and direct-to-consumer sales are included.
The federal government now aims for 75% of vehicles sold to be electric by 2035 and 90% by 2040, after changing its earlier targets.
Robert Karwell of JD Power said Canada’s sales growth is welcome but the country is still not on track to meet those goals.
Electric vehicles are getting cheaper on average, but they still cost about $7,000 more than gas-powered vehicles, while hybrids make up about 17% of the market.
Charging access remains a barrier, particularly for people who do not own a home where they can charge a vehicle.
The federal government announced $9 million in July to install nearly 400 chargers across Canada, and Karwell expects electric vehicle uptake to keep growing as prices fall.
Electric vehicle purchases in Canada rose 55 per cent in August 2026 compared with August 2025, according to Statistics Canada data.
Despite the increase, an automotive industry expert says Canada is not on track to meet its updated federal electric-vehicle targets.
JD Power analysis found electric vehicles made up seven per cent of the market in the third quarter of 2026, or about 10 per cent when plug-in hybrids and direct-to-consumer vehicles are included.
The federal government’s updated standards require electric vehicles to account for 75 per cent of vehicles sold by 2035 and 90 per cent by 2040.
The expert said lower electric-vehicle prices and government incentives could support further growth, while charging access remains a challenge.
- Who
- Canadian electric-vehicle buyers; Robert Karwell of JD Power commented on the sales data.
- What
- Electric-vehicle sales rose, but an expert says Canada is not on pace to meet federal targets.
- When
- Purchases rose 55 per cent in August 2026 compared with August 2025; JD Power reported market share for the third quarter of 2026.
- Where
- Canada.
- Why
- Not stated.
This story does not have two clearly opposing sides.
The federal government announced new auto standards, replacing the 2023 standards.
The federal government announced $9 million to install nearly 400 chargers across Canada.
Canadian electric-vehicle purchases rose 55 per cent compared with August 2025, Statistics Canada data showed.
JD Power analysis found electric vehicles made up seven per cent of the market, or about 10 per cent including plug-in hybrids and direct-to-consumer vehicles.
- August sales growth
- 55 per cent year over year
- Electric-vehicle market share
- 7 per cent in the third quarter of 2026
- Market share including plug-in hybrids and direct-to-consumer vehicles
- Approximately 10 per cent
- Federal target
- 75 per cent of vehicles sold electric by 2035
- Later federal target
- 90 per cent of vehicles sold electric by 2040
- Charging announcement
- $9 million for nearly 400 chargers across Canada
What people are saying
The data right now is telling us no
While they’re doing better, they’re not on that path
It’s a little bit surprising, a little stronger than we would have expected