Record-high EV sales in Canada

This article was published by the Canada Energy Regulator on Oct. 26, 2022.

Electric vehicle (EV) sales are increasing in Canada and across the world.⁽¹⁾ A record 86,032 electric vehicles were registered in Canada in 2021, making up 5.3 per cent of total vehicle registrations for that year. In comparison, there were 56,165 electric vehicles registrations (2.9 per cent of total registrations) in 2019 and 19,696 (1 per cent of total registrations) in 2017. The first quarter of 2022 saw the highest EV quarterly registrations on record,⁽²⁾ at 26,018 (7.7 per cent of total registrations for the period). Battery electric vehicles (BEVs) make up roughly 75 per cent of new electric vehicle registrations, with the rest going to plug-in hybrid electric vehicles (PHEV). See Table 1 for a description of the different vehicle types.

Figure 1: Share of electric vehicle in total new vehicle registrations

In 2021, most new electric vehicles were registered in Canada’s three most populous provinces. 43 per cent of new electric vehicles were registered in Quebec, 28 per cent in British Columbia, and 23 per cent in Ontario.

The sharp increase in new electric vehicle registrations contrasts with a 19 per cent decline in total new registrations from 2017 to 2021. New registrations of non-electric vehicles (all categories except battery electric and plug-in hybrid electric vehicles) fell 23 per cent over the same period. This decline is likely due to many factors that negatively impacted supply or demand of new vehicles. These include an increase in retail sales of used cars,⁽³⁾ reduced demand for transportation during the COVID-19 pandemic,⁽⁴⁾ low inventories of new vehicles available for sale,⁽⁵⁾ and growing electric vehicle market share.

Figure 2: New vehicle registrations by region and fuel type⁽⁶⁾

Every year, more electric vehicle models reach mass market, and they are becoming more competitive in markets still dominated by internal combustion engine (ICE) vehicles. Car manufacturers are adapting to consumers’ growing preference for larger vehicles⁽⁷⁾ by developing new, larger electric vehicles⁽⁸⁾. As a result, registrations of large electric vehicles outpaced electric passenger cars for the first time in 2021, and the trend is likely to continue.

Figure 3: New electric vehicle registrations by vehicle and fuel type

Aside from an increasing number of electric vehicle models⁽⁹⁾ across vehicle types, many factors can help explain the growing market share of electric vehicles. These include increasing range between vehicle charging,⁽¹⁰⁾ better charging infrastructure,⁽¹¹⁾ competitive fuel economy and cost,⁽¹²⁾ lower greenhouse gas emissions,⁽¹³⁾ lower maintenance cost,⁽¹⁴⁾ and government incentives.⁽¹⁵⁾ A recent survey⁽¹⁶⁾ by Ernst & Young indicates that 46 per cent of respondents are planning to purchase an electric vehicle instead of an internal combustion engine vehicle for their next purchase.

The Government of Canada is setting a mandatory target⁽¹⁷⁾ for all new passenger cars and trucks sales to be zero-emission by 2035, accelerating Canada’s previous goal of 100 per cent of sales by 2040. The mandate also includes fuel cell electric (hydrogen) powered vehicles.⁽¹⁸⁾

Table 1: Vehicle type definitions⁽¹⁹⁾

Vehicle type	Definition
Electric vehicle (EV)	Any vehicle that is primarily fuelled by electricity. EVs are either battery electric vehicles (BEVs) or plug-in hybrid electric vehicles (PHEVs). Hybrid electric vehicles (HEV) are excluded from this category because they cannot be plugged in.
Battery electric vehicle (BEV)	Battery electric vehicles are vehicles powered solely by a rechargeable battery pack and produce zero tailpipe emissions.
Plug-in hybrid electric vehicle (PHEV)	Plug-in hybrid electric vehicles are vehicles with a rechargeable battery pack and an internal combustion engine. They run on electric power until the battery is drained and then the internal combustion engine takes over for propulsion.
Hybrid electric vehicle (HEV)	Hybrid electric vehicles are vehicles with a rechargeable battery pack, which provides an extra boost of power, in addition to having an internal combustion engine.
Internal combustion engine vehicle (ICE)	Any vehicle that is primarily fuelled by the combustion of a fuel, generally gasoline or diesel, in an internal heat engine.
Multi-purpose vehicle (MPV)	Multi-purpose vehicles include sports utility vehicles (SUVs) and Crossovers.
Pickup trucks	Pickup trucks correspond to gross vehicle weight rate (GVWR) ranging from 0-14,000 Ib (e.g., classes 1, 2, and 3).
Passenger car	Vehicle designed or adapted primarily to carry people on highways and streets. It seats a driver and no more than eight passengers.
Large vehicles	The large vehicles category includes multi-purpose vehicles (SUVs), pickup trucks, and vans. This category also applies to large electric vehicles.

Footnotes

1. Canada Energy Regulator. (2021). Market Snapshot: Global EV sales need to significantly increase to meet 2030 Paris Agreement goals.
2. Statistics Canada. (2022). New motor vehicle registrations: Quarterly data visualization tool.
3. Statista. (2022). Retail sales of used car dealers in Canada from 2012 to 2021.
4. International Energy Agency. (2020). Changes in transport behaviour during the Covid-19 crisis.
5. ATB. (2022). New vehicle sales still suffering.
6. Data for Newfoundland and Labrador, Nova Scotia and Alberta are currently not available due to contractual limitations of the existing data sharing agreement. However, they are aggregated into the “Rest of Canada” category.
7. Canada Energy Regulator. (2020). Market Snapshot: New motor vehicle registrations show increase in SUVs and EVs.
8. Canada Energy Regulator. (2019). Market Snapshot: EVs in Canada – The hidden potential of the electric truck market.
9. Cansumer. (2021). All 44 Electric Vehicles Available in Canada.
10. Canada Energy Regulator. (2019). Market Snapshot: Average electric vehicle range almost doubled in the last six years.
11. Government of Canada. (2022). #EVWeek in Canada Delivers Investments for Decarbonizing Transportation Across Canada.
12. Canada Energy Regulator. (2021). Market Snapshot: Battery electric vehicles are far more fuel efficient than vehicles with internal combustion engines.
13. Canada Energy Regulator. (2018). Market Snapshot: How much CO₂ do electric vehicles, hybrids and gasoline vehicles emit?
14. Palmer et al. (2018). Total cost of ownership and market share for hybrid and electric vehicles in the UK, US and Japan.
15. Government of Canada. (2022). Eligible Vehicles.
16. Ernst&Young. (2022). Nearly half of Canadians say they plan to buy an electric vehicle as cost concerns fade.
17. Government of Canada. (2022). Minister of Transport announced the expansion of the Incentives for Zero-Emission Vehicles Program.
18. Government of Canada. (2022). Eligible Vehicles.
19. Statistics Canada. (2022). New motor vehicle registrations: Quarterly data visualization tool.