Canadian EV Sales Decline Amidst Overall Market Growth; Liberal 2035 Mandate Faces Scrutiny

Ottawa, Canada – Recent data from Statistics Canada reveals a notable shift in the Canadian automotive market. In April 2025, new vehicle sales across Canada saw an 11.3% increase from the previous year, reaching a record $10.8 billion in dollar terms. However, within this growth, sales of zero-emission vehicles (ZEVs) experienced a significant decline, plummeting by 28.5% compared to April 2024, with only 14,725 ZEVs sold. ZEVs represented 7.5% of total new motor vehicle sales for the month. This slowdown in EV demand appears to be influencing major automakers. Honda, for instance, is reportedly shifting its focus from a full transition to electric vehicles towards a greater emphasis on hybrid models, postponing major EV investment projects in Canada. Similarly, Mercedes-Benz is said to be shelving its EV-only plan in favor of producing more gas-powered cars. Despite these market trends and indications of public preference for more diverse vehicle options, the Canadian Liberal government continues to uphold its policy aiming for 100% zero-emission car sales by 2035. This mandate has faced opposition from the Conservative Party, which recently attempted to pass a motion advocating for consumer choice and halting the ban on gas-powered vehicles, citing concerns about increased costs for Canadians.