As surging energy prices leave motorists feeling the pinch at the gas pumps, Canadians are turning to electric vehicles and hybrid vehicles, data from Statistics Canada shows.
In March, 176,500 new motor vehicles were sold in Canada, a decline of 6.6 per cent compared to the same month in 2025. In terms of dollar value, sales were down 3.6 per cent last month compared to a year earlier.
However, one segment of the market that has grown year-over-year is zero-emission vehicles (ZEVs), a category which includes both battery electric vehicles and plug-in hybrid electric vehicles.
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Canadians bought 21,574 new zero-emission vehicles, which was an increase of 74.7 per cent compared to March 2025, Statistics Canada said.
In March 2025, ZEV sales made up just 6.6 per cent of all new vehicle sales. Last month, that jumped to 12.2 per cent of total new motor vehicles sold.
According to rate comparison website Rates.ca, the number of Canadians searching for a quote on car insurance for an EV was 40 per cent higher last month compared to March of last year.
According to pre-owned car platform Clutch, searches on their platform for electric vehicles have grown by more than half (54 per cent) since the start of the war.
“We’re seeing the relationship to rising gas prices and interest in EVs clearly in the data,” said Clutch CEO Dan Park.
The pressure from the oil market is driving Canadians to “actively explore” EVs as an option, Park said.
Gas prices remain elevated across the country with no end in sight to the war in Iran and the Strait of Hormuz, a crucial waterway used for the transport of oil to markets, being choked.
On Thursday morning, CAA said the average gas price in Canada was $1.89 per litre, more than half a dollar higher than this time last year, and just shy of the year-long high of $1.90 seen last week.
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