The Canadian Government recently responded to an opposition request for detailed figures on EV sales, breaking down domestic production versus imports.
Data shows that domestic zero-emission vehicle (ZEV) production remains a small fraction of total sales — and does not include any models in the affordable segment.
The data now revealed shows a structural gap between Canada’s policy goals to grow a domestic EV industry and the reality, as most EVs sold in Canada are imported.
According to the government, Canadian-made EVs currently include the Chrysler Pacifica — a plug-in hybrid minivan — and the Dodge Charger EV crossover, which only started production in 2024.
Stellantis is the only automaker producing any electrified vehicles in Canada for domestic sale.
None of the 1,370 Canadian-made EVs sold in 2025 fell below the C$50,000 affordability threshold set by the government’s own incentive programme.
While domestic EVs aren’t subject to the C$50,000 affordability cap — set in the recently unveiled Electric Vehicle Availability Program — their high price makes them less competitive in the mass-market segment.
Despite the addition of the Dodge Charger EV in 2024, total domestic EV sales actually declined — from 1,793 units in 2023 to 1,370 in 2025.
Pacifica sales fell 62% over the same period, from 1,793 to 682 units, while the Charger contributed 678 units in its first full year.
The request for data was submitted in early February by Conservative MP Kyle Seeback, Shadow Minister for Labour, who has been central to the party’s auto-sector plan.
The response from the office of Canada’s Minister of Transport and Government House Leader Steven MacKinnon came seven weeks later, signed by Parliamentary Secretary Mike Kelloway.
Canadian EV Sales in 2025
Canada recorded roughly 1.9 million new vehicle sales in 2025, according to Statistics Canada.
ZEVs — including battery electric vehicles (BEVs) and hydrogen fuel cell vehicles (FCEVs) — saw a slowdown compared to 2024.
With a market share of around 14–15% in 2024, the cut in incentives last year and the shift in consumer demand led sales to wind down.
The new Electric Vehicle Affordability Program, effective February, provides rebates up to C$5,000 for BEVs and FCEVs or C$2,500 for PHEVs, targeting these lower-priced vehicles.
Imported vehicles must meet the price threshold and be from countries with free-trade agreements, while the threshold is not applied to domestic vehicles.
Market Still Reliant on Foreign EVs
Most EVs sold in Canada are foreign-built, with key sources being the United States, Japan, South Korea and, as of recently, Italy.
US-made affordable EVs sold in Canada dropped 62% from 18,831 units in 2023 to 7,201 in 2025, while Japanese production nearly tripled from 3,470 to 9,438 units over the same period.
Canada’s five major automakers producing vehicles domestically are GM, Ford, Stellantis, Toyota, and Honda. USMCA rules allow them to import a set volume of US-made vehicles tariff-free.
In 2025, General Motors captured 21.2% of Canada’s EV market, registering over 25,000 vehicles.
The data provided by the Government implies that most of these vehicles were, however, priced above C$50,000.
GM has been scaling back overseas production due to high US tariffs, which has led to increased prices and layoffs across its Canadian plants.
US and Japan Dominance
While the Government seeks partnerships with Asian countries, Conservatives have pushed for a renewed free-trade pact with the United States.
Earlier this week, CPAC questioned Kyle Seeback on whether the Conservatives’ focus was “off” by prioritizing relationships with US carmakers rather than working with the Japanese automakers.
They stated that Toyota and Honda alone account for more than 76% of auto assembly in Canada.
However, Seeback rejected the premise.
“Yeah, it actually doesn’t focus on that, because the number one issue for both Toyota and Honda is tariff-free access to the United States,” he said. “Most of the vehicles they manufacture actually go into the United States, and they’re getting the same tariff challenges as the big three automakers are.”
According to the Conservative MP, “auto manufacturing in Canada cannot survive at the 15% tariff, because that makes those cars unprofitable to go to the United States.”
South Korea and Italy
South Korea remains a key affordable supplier through the Hyundai Group — which comprises Hyundai and Kia.
Kia Canada set a record with 94,622 units sold in 2025, up 9.2% from 2024.
“For 2026, Kia remains committed to electrification, with the EV4 arriving in dealers now, giving Canadians the most affordable EV option on the market,” the company said.
Italy emerged as a new source of affordable EVs, going from zero units in 2023 to 1,260 in 2024 and 2,380 in 2025 — primarily through the Fiat 500e.
Produced in Mirafiori, Turin, the model was Canada’s most affordable EV by mid-2025.
Chinese EVs
Part of Ottawa’s plan includes a 2025 trade deal with China, allowing 49,000 vehicles to enter Canada annually with a reduced 6.1% tariff.
Canada set out to require the first Chinese-built EVs entering the country to meet an affordability threshhold price of C$35,000 ($25,300).
However, according to final regulations published in the Canada Gazette, Canada will not require it over the next 12 months.
The provision, framed by the Government as a measure to increase the availability of affordable EVs, will not take effect until the 2027 quota year.
BYD, Chery, and Geely are all preparing to enter the Canadian market under the current quota by the year end.
Geely‘s CEO Andy An recently confirmed that the automaker intends to sell cars directly in Canada under its own name and “will look to localize production.”
BYD‘s Executive VP Stella Li also told Bloomberg the company is considering building a plant in Canada.
However, the Chinese giant insisted on fully owning and operating the facility itself, rather than entering a joint venture with local partners.
Ottawa has pushed Industry Minister Mélanie Joly to use the deal as leverage for Chinese EV joint ventures that would supply global markets from Canadian plants.
Unifor, Canada’s largest private-sector union, warned that without domestic partnership requirements, Chinese plants would provide limited jobs.
Unifor National President Lana Payne called the deal “a self-inflicted wound to an already injured Canadian auto industry.”
Auto Sector Concerns
Unifor has raised concerns that both the Government and Conservative auto plans are insufficient for the industry.
Statistics Canada reports manufacturing sales fell 3% to $68.7 billion in January, with vehicle sales at their lowest since September 2021.
On Tuesday, the Conservatives flagged — as they presented a motion for their auto pact — that “auto production in Canada has halved since the Liberals took office in 2015,” with a further 7.8% decline under Prime Minister Carney.
“Unjustified American tariffs threaten to end our auto sector,” the Conservatives stated, while noting at the same time that replacing the US market is “a dangerous illusion.
Currently, 90% of Canadian-made vehicles are sold to the U.S., and only 1% goes elsewhere.
The Conservative Party’s auto plan, presented by Pierre Poilievre, focused on a tariff-free U.S. pact and aligning Chinese tariffs with the US.
It was rejected in the House of Commons this Tuesday.
The motion received 135 votes in favor — all from Conservatives — and 193 votes against, including all other parties.
