Electric vehicles (EVs) have been a hot topic for the past couple of years, but they have a long-standing history in Canada. Toronto saw its first EV in 1893, and they grew increasingly popular in the United States. In the early 1900s, the batteries in EVs couldn’t keep up with gas-powered cars, and the abundance of cheap gas available made gas-powered cars take over the market.
Concern for more environmentally-friendly vehicles rose in the mid-1900s, but it wasn’t until the launch of the Toyota Prius in 1997 (a hybrid car) and Tesla in 2006 that the potential of EVs began to become clear.
Environmental Benefits of EVs
According to government reporting, in 2015, the transportation sector accounted for 24% of the country’s greenhouse gas emissions. Passenger cars were the “third-largest source of emissions in Canada’s transportation sector.” Since EVs have lower tailpipe emissions than “conventional vehicles,” the use of EVs is expected to lower greenhouse gas emissions (depending on the electricity source).
Also, the impact “Zero-Emission Vehicles” have on reducing “harmful air pollution” can prevent negative health impacts that arise from on-road vehicles because a large part of the Canadian population lives beside busy roads.
Convenience
Electric Vehicles pose other benefits to Canadians, including convenience. The average Zero-Emission Vehicle can drive 300-600 km on a single charge, which is well below the average driving range per day for Canadians. Plus, the vehicles can be charged at home, and public charging ports are becoming more widely available. 19 000 new ports have been added since 2018. However, CTV News reports that there are currently 14 722 chargers publicly available, which some argue is not enough.
Affordability
A huge concern for Canadians is affordability. In 2023, the median income for Canadians over the age of 15 was $45 400. The average income was $59 400. Since the Covid-19 pandemic, the price of cars has risen significantly. CTV News reported that the average cost for purchasing a new car was $63 264 in 2025.
Near the end of 2025, the average cost of a new EV was about $63 000. After the federal government’s incentives for purchasing EVs ($5000 rebate) ended, interest in purchasing EVs dropped. And sales dropped by 23% in the beginning of 2025.
EVs do seem to be more economically-friendly when it comes to fuel and maintenance. Considering volatile gas prices, it can cost 5-10 times less to charge a battery-electric vehicle. When it comes to maintenance, “[t]he Canadian Automobile Association (CAA) estimates that the average EV owner would save 40% to 50% in maintenance costs compared to a gas-powered vehicle.”
So, while EVs can be more cost-efficient over time, the upfront cost may be too much for the average Canadian.
The Deal With China
In an effort to “diversify our trade partnerships and catalyse new levels of investment,” Canada has formed a “new strategic partnership” with China. This partnership aims to collaborate in “energy, clean technology, and climate competitiveness.” During this meeting, multiple deals were reached (i.e. lowering tariffs on canola seed), but the deal concerning EVs is as follows:
- 49 000 Chinese EVs will enter the Canadian market with a “most-favoured-nation tariff” rate of 6.1%
- There is an expectation that, within three years, there will be new Chinese “joint-venture investment in Canada… to protect and create new auto manufacturing careers for Canadian workers” and a “build-out of Canada’s EV supply chain”
- Canada anticipates that, within five years, 50% of the vehicles will have an import price under $35 000, ultimately creating lower-cost vehicles for Canadians
The Premier of Ontario, Doug Ford, was initially critical of Prime Minister Mark Carney’s deal, claiming it will harm Ontario’s auto sector. He also expressed security concerns. He called for Canadians to boycott the Chinese EVs and support the companies building vehicles in Canada.
Many Canadians have mixed opinions on the deal. Some are in agreement with Premier Ford. Others believe the new EVs making up about 3% of Canada’s vehicle market will not harm it and help position Canada in the “new world” Prime Minister Carney alluded to in his speech at the World Economic Forum. Most agree that it’s too early to really tell, but 61% of respondents to a poll seem to be in support of the deal.
What cars are coming?
According to CBC, BYD (a Chinese manufacturer) surpassed Tesla to become the “world’s top EV seller” in 2025. They report that “one of BYD’s top sellers” is “a compact car with a short range known as both the Seagull and the Dolphin Mini [that] can go for less than $30,000.” While it is unclear which cars Canada will be getting, Inside EVs has posed some suggestions/predictions.
What’s the takeaway?
Overall, it’s clear that Canada would benefit from cars that are affordable, convenient, and better for the environment. Canada’s new deal with China has the potential to bring these benefits. But there are also valid concerns for how this will impact relations with the United States (for the “US is our largest market” and dominant trading partner), jobs in the auto sector (some have already been lost due to tariffs), and the impact on Canadians.
Since these deals directly impact Canadians, it is important to be informed and remain up to date as more information becomes available.
**As of February 5th, 2026, Prime Minister Carney has announced the return of EV rebates**