Introduction of rebates tied to sales and internet questions, but high oil prices could push electrified market even further

Despite a marginal drop in overall vehicle registrations in February, zero-emission vehicle (ZEV) sales rose dramatically from last year, reflecting a parallel rise in Canadian internet searches on electric vehicle ownership in the first part of 2026.

According to Statistics Canada (StatsCan) data, 12,626 ZEVs were sold in February 2026, a rise of 47.2 per cent over the same month last year. 

Overall, ZEVs made up 10.2 per cent of the 124,004 total vehicle sales in February. That is less than the 11.2 per cent market share of ZEVs from the last quarter of 2025, though it is considerably more than January’s sales at 8,672.

Surge follows EVAP

The surge followed Prime Minister Mark Carney’s announcement on Feb. 5 that federal ZEV incentives would once again be offered — this time through the Electric Vehicle Affordability Program (EVAP). The incentives, which became available from Feb. 16, include $5,000 for BEVs and $2,500 for PHEVs for this year, with incentives steadily decreasing until the end of the program in 2030. 

The vehicles must be new and have a maximum transactional value of $50,000 at sale. The cost cap does not apply to Canadian-built ZEVs. 

(Note: StatsCan classifies battery electric vehicles [BEVs] and plug-in hybrid electric vehicles [PHEVs] as “zero-emission vehicles.” This grouping does not reflect Electric Autonomy’s policy, which considers only non-combustion engine vehicles as zero-emission. However, where statistics refer to ZEVs, we have adhered to StatsCan’s definition for consistency.)

Increased online interest

While Google Trends, which analyzes search requests through Google and YouTube, does not publicly divulge search volume numbers, it does show Canadian searches for “EV” and “plug-in hybrid” in February were at all-time highs, only to be eclipsed by the same searches in March. 

It also considers “EV rebates” to be a breakout term in the first part of 2026. 

Data from AutoTrader, Canada’s largest online vehicle marketplace, also confirms a rising interest in ZEVs. 

Baris Akyurek, vice-president of insights and intelligence, has seen a considerable increase in ZEV searches on the site through January and February, as well as indications of more sales through dealerships. 

Used ZEV sales on the rise

“There was some uptick in used [ZEVs] as well, but it wasn’t as prominent as it was on the new side,” he told Electric Autonomy Canada in an interview, surmising that this is because the rebate doesn’t apply to used ZEVs. 

“But since the beginning of the [U.S. – Iran war, which began Feb. 28], there is a substantial uptick in used-car sales on [the site]. Why? Because gas prices have increased quite dramatically, and while new [EV] interest is still high, there is now some additional demand for EVs on the use side as well. 

“So overall, the market seems pretty strong.”

Purchase intent

The AutoTrader online data also reflects its most recent survey on electric vehicle purchase intent. 

Canvassing 1,761 Canadians across the country from Feb. 9 to March 11 — just after EVAP was announced — the survey found that nearly half of non-EV owners (49 per cent) said they would consider buying an EV over a gas-powered vehicle for their next car, compared with 42 per cent last year. 

It’s the first year since the AutoTrader survey started in 2022 that interest in EV purchasing has risen. Throughout the duration of incentives with the former Zero-Emission Vehicles Program (iZEV), 46 per cent of those surveyed in 2024 were considering an EV, 56 per cent in 2023, and 68 per cent in 2022 when the program was first announced.

Ontario EV insurance searches

More Ontario consumers are also online searching for ZEV insurance quotes.

David Mayer is director of insurance and underwriting with Rates.ca, an online comparison platform for insurance rates in Canada. His data for Ontario has shown a marked increase in year-over-year searches for ZEV insurance quotes this year. 

January’s searches were 19 per cent higher than 2025, February was 33 per cent higher, and March saw a 36 per cent uptick.

“If these prices on fuel continue to rise, I think Canadians are always going to look at their pocketbooks and do a full assessment of all their household expenses,” he said. 

“Fuel can be a big part of that, depending on your commuting distance and where you’re located in Ontario or across the country.”