A new white paper from Canadian Black Book (CBB) paints a picture of a Canadian electric vehicle (EV) market that, while volatile, is steadily evolving amid growing consumer interest and shifting vehicle economics.

Titled “The Canadian Electric Vehicle Market in 2025,” the report dives deep into current trends, emerging challenges, and future opportunities shaping Canada’s EV landscape in the latter half of 2025.

“This white paper isn’t just a status report — it’s a roadmap to where we’re going,” said Daniel Ross, Senior Manager of Industry Insights and Residual Value Strategy at CBB.

The study places Canada’s EV progress in a global context, noting that while countries like Norway and China continue to lead in EV adoption, both are now facing slower growth due to trade disruptions and changing policy environments. Canada, by comparison, lags behind with a 15.4% share of the EV market.

Affordability remains a concern. The report highlights that from 2021 to 2025, the average price of all vehicles rose by 27%, while EVs saw a more moderate increase of just 13%. This has helped narrow the price gap between EVs and gasoline vehicles — now 23%, down from 36%.

The used vehicle market is also undergoing transformation. According to CBB, the supply of used EVs is projected to surge by nearly 800% by 2030, while internal combustion vehicles are expected to see a 17.3% decline in market share over the same period.

Policy decisions will play a critical role. The report forecasts that Canada’s EV market could swing by as much as 5.1% in 2025 — equivalent to over 94,000 units — depending on whether federal incentives for zero-emission vehicles are reinstated.

“We’re optimistic about the long-term potential of EVs in Canada,” added Ross. “But realizing that promise will demand close collaboration between government and industry.”