New data shows a substantial growth in electric vehicle sales in Canada, but one expert says they still are not on track to reach the federal government’s updated EV and emissions targets.
EV purchases increased 55 per cent in August 2026 compared to the same month last year, newly-released data from Statistics Canada shows.
“It’s a little bit surprising, a little stronger than we would have expected,” Robert Karwell, director of OEM solutions with JD Power, told Global News.
JD Power’s own analysis, conducted with data from automotive dealers, shows that EV sales increased two percentage points in the third quarter of 2026, now making up seven per cent of the market share.
If plug-in hybrids and direct-to-consumer vehicles, like Tesla, are included, Karwell said that number increases to approximately 10 per cent.
The Government of Canada previously set a target of achieving 60 per cent of all new vehicles sold being electric by 2030. By 2035, that share was pledged to be 100 per cent.
In February, the federal government announced a major shift in its national auto strategy, repealing the 2023 standards with new standards that require 75 per cent of vehicles sold to be electric by 2035 and 90 per cent by 2040.
Karwell said that even with the boost in Q3 and the less aggressive target, Canada is still far from achieving it.
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“The data right now is telling us no,” he said. “While they’re doing better, they’re not on that path.”
But he said he does think uptake will continue to increase, especially as the cost drops.
“Vehicles, on average, are getting more expensive by about one and a half percent,” Karwell said. “The interesting thing with EVs is that, and I guess this isn’t surprising considering they’re more popular, is they’re actually getting cheaper to buy on average.”
As technologies continue to evolve, Karwell said the price to go electric will continue to decline, coming closer and closer to the cost of the average gas-powered vehicle. Government incentives will also help to close the gap.
Right now, he said that gap sits at around $7,000.
The gap for hybrid vehicles is around $3,000 to $4,000.
“A lot of Canadians have voted with their feet and their wallets and are purchasing a hybrid vehicle as kind of another option amongst electrified vehicles amongst alternative power trains,” Karwell said, adding that hybrid vehicles make up approximately 17 per cent of the market share.
He said hybrid vehicles are also becoming a more suitable option for many people who may not own their own homes with a place to charge their vehicles.
“Homes are really expensive. If you don’t own a home, where are you going to recharge?” he said.
Challenges associated with charging infrastructure continue to remain an inhibitor to a full adoption of electric vehicles, Karwell added.
In July, the federal government announced $9 million to install nearly 400 chargers across Canada.
© 2026 Global News, a division of Corus Entertainment Inc.
