Canadian EV sales rebound in 2026 after federal rebate launch and fuel price surge

Zero emission vehicle sales in Canada fell in 2025 after federal and provincial subsidies ended, but have jumped in 2026 following two developments: a sharp rise in petrol prices linked to geopolitical disruption in the Strait of Hormuz, and the February 2026 introduction of the federal Electric Vehicle Affordability Program rebate scheme. Industry analysts had forecast weak sales for years, citing charging infrastructure, range and upfront cost as barriers.

Why it matters: The rebound underscores how fiscal incentives and fuel cost volatility can rapidly shift fleet and consumer procurement decisions. CPOs and site hosts may see accelerated demand if the EVAP rebate sustains higher plug in vehicle adoption across Canada.