Canadian zero-emission vehicle (ZEV) sales continued accelerating in March, rising 74.7% year over year to 21,574 units, said Bank of Montreal (BMO).
March was the first full month with reinstated federal incentives of up to $5,000, and the response highlights how price-sensitive demand remains, noted the bank.
The ZEV share of new vehicle sales rose to 12.2% nationally, up "meaningfully" from a year earlier.
Regionally, sales more than doubled in Quebec to 8,752 units, or 136.4% year over year, supported by low electricity prices and provincial incentives. Ontario and British Columbia also saw renewed momentum, with sales up 40.1% year over year and 53.3% year over year, respectively.
In both B.C. and Quebec, ZEVs once again accounted for more than one-fifth of new vehicle sales, stated BMO.
Elevated gasoline prices may continue to lend support to electric vehicle (EV) demand in Canada, reinforcing the impact of renewed incentives, pointed out the bank. Even so, the domestic market remains modest -- peaking at just over 260,000 units in 2024 -- and unlikely to support further production expansion without materially faster growth or renewed access to the United States market.
By contrast, U.S. ZEV sales remain under pressure, down 29% year over year in March and about 28% lower year-to-date, following the expiry of federal tax credits, added BMO.