After facing slow sales for several months, electric vehicles are experiencing a surge in demand due to rising gas prices and the reintroduction of government incentives.
Since January, when the Liberal government reinstituted incentives and just before the U.S. and Israel conducted strikes on Iran, triggering a spike in gas prices, EV sales have been on the rise. Statistics Canada data shows that Canadians purchased 8,672 new EVs in January, which increased to 12,547 in February and 21,574 in March, before slightly dropping to 17,795 in April. Overall, EV sales in the first four months of 2026 have seen a 20.8% increase compared to the same period in 2025.
With the affordability factor driving this renewed interest in EVs, more Canadian consumers are contemplating purchasing an electric vehicle. A recent annual JD Power survey revealed that 34% of new-car shoppers are somewhat or very likely to opt for an EV as their next vehicle, up from 28% the previous year.
Industry experts attribute this surge in interest to the combination of high gas prices and the return of EV incentives. The reintroduction of incentives by the government, offering up to $5,000 off fully electric vehicles and up to $2,500 off hybrids made in Canada or countries with free trade agreements, has made EV prices more competitive with gas-powered vehicles.
Max Maurice, sales manager at Shift Electric Vehicles, a used-EV dealership in Burlington, Ont., noted that many customers are citing the escalating gas prices as a reason for considering switching to EVs. Although fuel costs have slightly decreased from recent highs, with the national average at $1.63 per liter, concerns about potential future price spikes are prompting consumers to explore EV options.
Additionally, the affordability of Chinese EV brands is attracting interest from buyers. A significant portion of new car shoppers surveyed by JD Power expressed willingness to consider Chinese EV brands, especially due to their lower price points. Despite regulatory and strategic challenges that could delay the entry of brands like BYD and Chery into the Canadian market, the potential influx of Chinese EVs is generating anticipation among consumers.
While obstacles such as range anxiety and charging infrastructure persist, declining costs have alleviated price concerns for many shoppers. The economic factors, including high fuel prices and incentives, are expected to sustain the current momentum in EV sales. However, the overall vehicle sales landscape may not see a substantial boom, as the monthly totals might not exhibit drastic changes despite the increasing popularity of EVs.
