Electric vehicles (EVs) are selling faster around the world than expected. In July, the International Energy Agency raised its forecast for 2026, predicting EVs will make up 29% of all new cars sold globally this year, up from its earlier estimate of 28%.
Meanwhile, Canada’s approach to supporting EV adoption has been mixed.
Just last month, the federal and Ontario governments announced another $2.5 billion to support Canada's auto industry. That's good news, especially with U.S. tariffs threatening Canadian jobs. More recently, Budget 2026 committed $634.2 million to EV charging and related programs, including funding for more than 55,000 additional chargers – a significant investment that will make it easier for Canadians to switch to EVs.
Less encouraging, though, was the decision to freeze vehicle pollution standards through 2029, delaying stronger requirements that would encourage automakers to sell more EVs in Canada.
With this latest weakening of Canada's EV policies, Canada risks falling behind as the global EV market grows, which puts jobs and investment at risk and leaves Canadians waiting longer for more affordable electric vehicles.
So, where does that leave us?
In two recent videos with the EV Society, Adam Thorn, our director of Clean Growth, talks about how we got here, what's at stake and what Canada needs to do next.
Can Canada hit 75% EV sales by 2035? Not with the current path
Canada still wants 75% of new vehicle sales to be electric by 2035. Is it doing enough to get there?
Adam looks at how Canada's EV policies have changed over the past few years and explains how government regulations can affect which cars automakers sell in Canada, how much they cost and where businesses invest.
Five things you'll learn:
- Canada has steadily scaled back its EV ambitions.
- Current policies won't get us to 75% EV sales by 2035.
- Stronger standards can help bring more affordable EVs to Canada.
- Clear policies give charging companies confidence to invest.
- Canada risks falling behind countries where EV sales are growing.
Why aren't more Canadians buying EVs?
EVs are cheaper to fuel and maintain than gas-powered cars. So why aren't more Canadians making the switch?
In this follow-up conversation, Adam talks about some of the barriers people face, including higher upfront prices, concerns about charging and simply getting comfortable with a different kind of vehicle.
The conversation also turns to Canadian auto jobs. With U.S. tariffs putting pressure on manufacturers, protecting existing jobs is a real concern. Adam talks about why preparing for an electric future is also important to keeping Canada's auto industry competitive in the long run.
Five things you'll learn:
- Higher upfront prices are still holding some buyers back.
- More new EVs today means more used EVs on the market tomorrow.
- Purchase incentives can help make EVs more affordable.
- Trying an EV or talking to someone who owns one can make a difference.
- Protecting Canadian auto jobs means preparing for an electric future.
What's at stake for Canada?
Canada's EV industry already supports around 130,000 jobs, from vehicle and battery manufacturing to charging infrastructure and critical minerals. A 2025 study by EY for Electric Mobility Canada found that the industry could support between 360,000 and 600,000 jobs by 2035, depending on how the market develops. We need to make sure that protecting existing auto jobs doesn't come at the expense of supporting Canada's growing EV industry and the jobs it's creating.
Canada is investing billions to support its auto industry. With stronger vehicle pollution standards on hold until 2030, we need a plan to keep EV sales growing, bring more affordable electric vehicles to Canadians and make charging easier. That would give more Canadians a chance to save on fuel and reduce their exposure to unpredictable gas prices.
