Canadian Electric Vehicle Industry Insights: Q4 2024

• Zero-emission vehicles (ZEVs) account for 1 in 6 new vehicles registered in Canada. ZEV market share was 15.4% for 2024, up from 10.7%.
• The battery electric vehicle (BEV) market share increased to 11.4%, with volume increasing by 41.8%.
• Quebec has the highest rate of EV adoption of all provinces, with ZEVs accounting for 32.9% of all new registrations.
• Quebec also leads in overall volume, accounting for 54.0% of overall ZEV volume in Canada.

As 2025 opens, the Canadian automotive market is undergoing a transformative shift toward sustainability. ZEV adoption has reached unprecedented levels, with approximately one out of every six vehicles now classified as a ZEV.

In 2024, Canada witnessed a remarkable increase in ZEV national penetration, which now stands at 15.4%, a significant rise from 11.7% the previous year. This growth is mirrored in BEV penetration, which has increased from 8.8% to 11.4% year-over-year.

Quebec emerges as the ZEV adoption frontrunner, boasting the highest penetration rate at 32.9% and representing 54% of all ZEV registrations in the country. This dominance reflects the province’s aggressive policies and incentives for EV adoption.

The last quarter of 2024 delivered even more impressive results. ZEVs accounted for approximately one out of every five vehicles sold in Canada during Q4 2024, with the national penetration rate climbing to 18.9%, up from 16.5% in Q3 2024. The BEV penetration rate also saw a notable increase, rising from 12.2% to 14.2%.

In Quebec, the ZEV penetration rate soared to 42.0%, with the province now accounting for 60.0% of ZEV registrations nationwide. This surge underscores the effectiveness of Quebec’s policies encouraging consumers to transition to EVs, fueled by consumers rushing to secure CAD$7,000 in incentivizes before they dropped to CAD$4,000 on January 1, 2025.

Quebec’s mandate for 100% ZEV sales by 2035 is the key driver of Canada’s record-high ZEV adoption rate. This ambitious goal is supported by incentives making ZEVs, particularly BEVs, more affordable, along with educational initiatives promoting the benefits of transitioning to zero-emission powertrains.

As of January 2025, however, preliminary data reveals a concerning trend: ZEV registrations in Quebec have begun to decline, with a staggering 65% decrease in BEV volume. This decline suggests that incentives targeting price-sensitive consumers heavily influenced the initial demand. Because these incentives may have reached their peak effectiveness, the sustainability of ZEV adoption in the province remains uncertain.