Canadian sales of new battery electric vehicles (BEVs) and plug-in hybrids (PHEVs) achieved unprecedented levels in the second quarter of this year, according to the latest Statistics Canada data, marking a stark contrast to recent global trends in the electric vehicle (EV) market. 

The second quarter saw BEV and PHEV registrations reach all-time highs, capturing the largest market share ever for low-emission vehicles. Total low-emission vehicle registrations, including non-plug-in hybrids, constituted a record 20.9 percent of the overall new vehicle market, surpassing 100,000 registrations for the first time in a single quarter. 

While the global EV market has faced setbacks with production slowdowns and project delays due to decreasing demand, Canada’s numbers reflect a different narrative. “I expected Canadian figures to mirror the stagnation seen in the US, but instead, we saw the highest number of units ever recorded for BEVs, exceeding 48,000,” said Erik Johnson, Senior Economist at BMO. 

Total new vehicle registrations in Canada reached 511,173 in the second quarter, marking a 25 percent increase from the previous quarter and an 8 percent rise year-over-year. Johnson attributes this surge partly to improved vehicle availability. “For the past two-and-a-half years, finding a new vehicle was challenging, leading many to the used market or postponing purchases. It wasn’t until late last fall that inventory levels started to improve significantly,” he explained. 

BEV registrations surged to 48,489 units, a 42 percent increase from the previous quarter and a 36 percent rise year-over-year. PHEV registrations also saw significant growth, reaching 17,244 units, up 43 percent year-over-year. BEVs and PHEVs accounted for 9.49 percent and 3.37 percent of total registrations, respectively. Quebec led in low-emission vehicle sales, with more than half of BEV registrations occurring in that province, followed by British Columbia. 

Johnson notes that conventional hybrids had a relatively flat quarter in Canada, unlike in the U.S., where they are experiencing significant growth. He attributes part of the Canadian market’s strong performance to the affordability of electricity in Quebec and British Columbia, which may enhance the appeal of plug-in vehicles. 

Looking forward, Johnson highlights the need for continued subsidies and increased model availability to sustain growth. He also emphasizes the importance of new, competitively priced EV models entering the market to address the current gaps.