Canadians bought far more electric and plug-in hybrid vehicles in March as gasoline prices climbed near record levels, even as the broader new vehicle market slowed, according to Statistics Canada data.
New motor vehicle sales fell to 176,500 units in March, down 6.6 per cent from the same month in 2025. The total dollar value of sales also declined, slipping 3.6 per cent year over year.
But zero-emission vehicles, a category covering battery electric vehicles and plug-in hybrid electric vehicles, moved sharply in the opposite direction.
Statistics Canada said Canadians purchased 21,574 new zero-emission vehicles in March, a 74.7 per cent increase compared with March 2025.
The growth also lifted ZEVs’ share of the new vehicle market. In March 2025, zero-emission vehicles accounted for 6.6 per cent of all new motor vehicle sales. Last month, their share rose to 12.2 per cent.
The shift suggests higher fuel costs are affecting buying decisions, with more drivers weighing electric and hybrid options as a way to reduce exposure to pump prices.
Consumer interest also appears to be rising beyond dealership sales. Rates.ca said the number of Canadians searching for car insurance quotes for electric vehicles was 40 per cent higher last month than in March 2025.
Pre-owned car platform Clutch reported a similar trend. The company said searches for electric vehicles on its platform have increased by more than half, or 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.
Park said pressure from the oil market is pushing Canadians to “actively explore” EVs as an option.
Gas prices remain elevated across Canada as the war in Iran continues and the Strait of Hormuz, a key oil transport route, faces disruption.
CAA said Thursday morning the national average gas price stood at $1.89 per litre. That is more than 50 cents higher than the same time last year and slightly below the year-long high of $1.90 recorded last week.
