U.S. dealers aren’t the only ones who face a rollercoaster ride throughout the electric-vehicle sales landscape.
Canadian interest in EVs remains largely unchanged in 2025, according to the J.D. Power 2025 Canada Electric Vehicle Consideration (EVC) Study, with 28% of new-vehicle shoppers saying they are “very likely” or “somewhat likely” to consider an EV – down just one point from a year ago. But what appears stable on the surface masks deeper disruptions driven by paused government incentives, shifting brand preferences and regional disparities.
“Despite a great deal of volatility in the EV marketplace, overall consumer interest in EVs at a topline level is largely unchanged this year,” says J.D. Ney, director of the automotive practice at J.D. Power Canada. “What is noteworthy, though, is the reaction to the incentive landscape, and perhaps more importantly for manufacturers, the shift in consumer interest toward traditional brands.”
The pause of Canada’s federal iZEV rebate – worth $5,000 per eligible EV – is a key factor. Nearly 42% of shoppers who say they are likely to consider an EV admitted the rebate’s suspension had negatively influenced their purchasing decisions. The effect was most pronounced in Quebec, where EV consideration dropped 8 percentage points during a temporary halt in provincial incentives earlier this year. In contrast, interest rose 2 points in the rest of the country.
Alongside changing sentiment, the brand leaderboard has shifted significantly. Hyundai, Kia, Toyota, Ford and Chevrolet are now the top five most-considered EV brands among Canadians likely to go electric.
Tesla, long a dominant force in EV shopper consideration, dropped to eighth place – losing 16 percentage points year over year. All other brands combined gained just 0.5 percentage points, indicating that Tesla’s decline was not matched by broad-based brand adoption.
While Canadian consideration stalls, the U.S. market, though rocky, has recently seen some meaningful EV momentum.
According to Kelley Blue Book, nearly 300,000 new EVs were sold in the first quarter of 2025 –a robust 11.4% increase year over year. EVs represented 7.5% of total new-vehicle sales in the U.S., up from 7% in Q1 2024. That growth is driven by fresh models from Acura, Audi, Chevrolet, Honda and Porsche, even as automakers sunset older offerings like the Chevrolet Bolt in favor of new entries like the Equinox EV.
Across the Atlantic, European car buyers appear to be choosing a different electrification path, as reported in WardsAuto. While battery-electric vehicle registrations in the EU grew 26.4% year-to-date – reaching 558,262 units – BEVs still account for only 15.3% of the expanded EU market, well below government expectations.
By contrast, hybrid-electric vehicles now dominate Europe’s powertrain landscape, capturing 35.3% of the market. Registrations of hybrids rose 20.8% in the first four months of 2025, totaling 1,285,486 units, driven by double-digit growth in major markets, including France (+44.9%), Spain (+35.8%), Italy (+15%), and Germany (+11%).
Meanwhile, overall EU new-car demand fell 1.2% year-to-date but bounced back with a 1.3% year-over-year gain in April, according to the European Automobile Manufacturers' Assn. (ACEA).
As Canadian policymakers and dealers reflect on next steps, the diverging paths in the U.S. and Europe highlight key lessons: Incentives remain a powerful lever in EV adoption, while hybrids offer a practical stepping stone amid infrastructure gaps and consumer hesitation. With 75% of Canadian shoppers saying they are “not very confident” or “not at all confident” in the country’s 2035 zero-emission sales target, the industry’s next moves may determine whether current EV stagnation turns into sustained momentum – or missed opportunity.
The Canada Electric Vehicle Consideration Study was developed from data of 3,979 surveyed new-vehicle shoppers in March and April 2025 and provides a benchmark on EV trends by geography, lifestyle, cross-shopping behaviors and rejection reasons, reports J.D. Power.
