Toronto, Ontario — New data on Canadian vehicle sales during June, 2025 show electric vehicle sales have cratered over the past year.
According to Statistics Canada, 14,090 new zero-emission vehicles were sold during the month, down 35.2 percent from the previous June. As a percentage of all vehicles sold comprised, EVs fell from about 9 percent of all new vehicles sold to just from 7.9 percent.
The declines come as Canada’s governing Liberal Party faces increased pressure to rethink its approach to transitioning away from fossil fuels. Currently, the the governing Liberal Party is standing by its plans to ensure 20 percent of new vehicles sold in 2026 will be emissions-free, with further a further 60 percent target set for 2030 and a 100 percent one to come into force in 2035.
Conservative Leader Pierre Poilievre has seized on the struggling EV market, launching what he’s branded a national campaign against the Carney tax — his colourful nickname for the EV mandate. With manufacturers facing penalties of up to $20,000 per vehicle sold over the cap, Poilievre argues Canadians will inevitably foot the bill through higher prices.
Meanwhile, the Liberal Party under Prime Minister Mark Carney continues to champion its green transition agenda. His successful electoral platform included pushing the 100 percent federal fleet electrification forward by five years. Adding to the policy muddle, Canada slapped a 100 percent tariff on Chinese EVs last fall – effectively kneecapping one of the few sources of affordable electric vehicles while simultaneously demanding Canadians buy more of them.
Despite the severe declines faced in the EV segment, Canada’s auto sector performed well overall. During the month, 177,313 new cars were sold in Canada during the month, up 6.2 percent from June 2024. In dollar terms, sales actually increased 3.1 percent during the same period. During the year, there were also more new motor vehicles sold in every province compared with the same period in 2024. Sales of new passenger cars increased 19.5 percent in June 2025 — the first gains experienced by the sub-sector since November 2024.
