Canadian EV Interest Surges Amid Gas Price Spikes and Federal Rebates
Canadian consumer interest in electric vehicles has experienced a significant resurgence, fueled by a combination of soaring gas prices and the reintroduction of federal consumer rebates. According to a recent survey, this trend marks a notable reversal from previous years of declining enthusiasm for EVs.
Survey Reveals Growing Purchase Intent
An annual survey conducted by AutoTrader.ca, involving more than 1,700 Canadians, indicates that 49 percent of non-EV owners would now consider purchasing an electric vehicle. This represents a substantial increase from 42 percent in 2025 and is the first uptick in EV purchase intent since 2022.
Baris Akyurek, vice-president at AutoTrader.ca, commented on this shift, stating, "We have been seeing a decline in interest in EVs since 2022 in our data, and now there is an uptick and there are multiple reasons behind this. One is gas prices and the other is the federal consumer incentives."
Impact of Rising Fuel Costs
The average price of gas in Canada has climbed to $1.747 per litre, marking a 45 percent increase from $1.20 in late December. This spike was particularly pronounced in March following geopolitical tensions that disrupted global oil supply chains.
In response to these rising costs, searches for electric vehicles on AutoTrader.ca surged by 33 percent in March. Akyurek noted a distinct pattern between new and used EV searches, with new vehicle interest spiking after government announcements and used vehicle searches increasing post-geopolitical events.
Federal Rebate Program Driving Sales
The federal government's Electric Vehicle Affordability Program (EVAP), announced in February, has played a crucial role in stimulating EV interest. The program offers rebates of up to $5,000 per vehicle, supported by approximately $2.3 billion in funding over five years, with incentives gradually decreasing annually.
Following the program's launch on February 16, sales of new EVs demonstrated immediate growth, achieving 38 percent year-over-year growth by late March, compared to flat performance prior to the announcement. Used EV sales also increased by 13.7 percent during the same period.
Affordability Concerns and Market Trends
Price remains a significant barrier for many consumers, with 54 percent of prospective EV buyers indicating they could not afford an electric vehicle without government rebates. However, market trends show improving affordability, with the average battery electric vehicle (BEV) price declining to $64,815 in March, a 10.7 percent year-over-year decrease.
"Even if the gas prices go back to pre-war levels, we don't think the EV interest will disappear, all else being equal," Akyurek emphasized, highlighting the lasting impact of government initiatives and infrastructure investments.
Potential for Further Market Transformation
The potential introduction of imported Chinese electric vehicles could further enhance affordability for Canadian drivers, potentially accelerating EV adoption rates. This development, combined with existing government programs and charging infrastructure investments, suggests a sustained shift toward electric mobility in the Canadian automotive market.
AutoTrader.ca's analysis concludes that the combination of federal incentives and rising fuel prices has created tangible sales growth for both new and used electric vehicles, signaling a potential long-term transformation in Canadian transportation preferences.
