Tesla’s Model Y was the Best Selling EV in Canada in Q2

According to a recent report by S&P Global Mobility, Zero Emission Vehicles (ZEVs) are gaining significant traction in Canada, accounting for 10.5% of all new light vehicle registrations in the second quarter of 2023. This marks an increase from 9.2% in the previous quarter and sets a new record for ZEV market share in the country.

Key Findings:

• Overall Market Growth: The light vehicle industry in Canada saw a quarter-over-quarter growth of 34.3%. Within this, Battery Electric Vehicles (BEVs) experienced a substantial volume increase of 46.3%, while Plug-In Electric Vehicles (PHEVs) saw an even more significant growth of 77.8%.
• Provincial Leaders: British Columbia leads in ZEV adoption with a 16.9% market share, followed by Quebec, which accounts for 40.5% of the total ZEV volume. Ontario lags behind with a 7.2% market share but saw a significant increase in ZEV volume, contributing to 28% of all ZEV registrations across Canada.
• Tesla’s Influence: Tesla’s Model Y led the way in BEV registrations, particularly in British Columbia where it made up 41.7% of ZEV registrations. However, Tesla’s market share is diminishing as new ZEV models enter the market, indicating a shift in consumer preferences.
• Future Projections: S&P Global Mobility forecasts that ZEVs will occupy 13% of the market share by the end of 2023, rising to 17% in 2024, and reaching a substantial 23% share by 2025.

The report underscores the growing momentum towards sustainable transportation solutions in Canada, influenced by a variety of factors including model availability, provincial and federal incentives, and changing consumer preferences.

Tesla’s Model Y emerged as the top-selling BEV in the country during Q2, highlighting the brand’s continued, albeit changing, influence in the market.

With a rumoured Model 3 refresh coming soon, existing inventory of the latter has seen price drops, on top of federal and provincial incentives. A new 2023 Model 3 RWD is showing right now in the existing inventory at $50,040, a discount of $4,950 CAD off the $54,990 starting price. If you subtract the federal $5,000 rebate, that takes the car down to $45,040, before provincial rebates (such as up to $3,000 in B.C. and $7,000 in Quebec).

That would be $42,040 in B.C. after a max provincial rebate or $38,040 in Quebec after a max provincial rebate for a new Model 3. If you order with a referral code, you save an extra $650 on top and get 3 months of free Full Self-Driving capability. That makes a Model 3 RWD cheaper than a 2024 Toyota Corolla Hybrid, which starts at $37,525 CAD.