Rising fuel prices prompt Canadians to consider EVs. Here’s how much they cost

The BYD Sealion 6 DM-i from Chinese electric vehicle (EV) manufacturer BYD is pictured at the 2025 Bangkok International Motor Show. Photo: Getty

Article content

The continued conflict in Iran is driving oil prices higher, with those increases now reflected at gas pumps across Canada.

Article content

At the same time, the prospect of Chinese-made EVs entering the Canadian market is prompting more consumers to consider investing in an electric vehicle.

Article content

Article content

In fact, a survey by Rates.ca, which was conducted between February 27 and March 2, right as the conflict in Iran began, found that 30 per cent of Canadians are open to buying an EV.

Article content

Article content

Meanwhile, search volume for electric vehicle models on the Rates.ca insurance quoter has climbed, with EV interest rising by 40 per cent in March compared to the same time last year.

Article content

Article content

However, cost remains the biggest barrier. The survey found that 59 per cent of Canadians interested in buying an EV cited purchase price as their primary concern.

Article content

Erik Johnson, vice president and senior economist at BMO Capital Markets, told Rates.ca that EVs typically cost upwards of $50,000 in Canada.

Article content

Meanwhile, 2025 research from Driving.ca found the cheapest new car in Canada was the Nissan Versa, with a base price of $20,798, while the cheapest EV in Canada was the Nissan Leaf, with a base price of $41,748.

Article content

However, that may soon change.

Article content

In January 2026, Prime Minister Mark Carney announced a trade deal allowing an initial 49,000 Chinese electric vehicles into the Canadian market, lowering a 100 per cent tariff on imports, imposed in 2024, to six per cent.

Article content

Chinese EVs can cost $10,000 to $15,000 less than comparable models currently popular in Canada.

Article content

Article content

Article content

A sign outside the BYD Co. automobile showroom in Coulsdon, UK. BYD sold more electric vehicles in Europe than Tesla Inc. for the first time, overtaking the American brand that long led the continent’s EV segment. Photographer: Chris Ratcliffe/Bloomberg Photo by Chris Ratcliffe /Bloomberg

Article content

The Canadian auto market officially opened to Chinese-made electric vehicles on March 1, and BYD has signalled plans to open 20 dealerships nationwide this year.

Article content

Article content

Starting in 2027, 10 per cent of the EVs from China must be “affordable,” with an import price of $35,000 or less. This quota will increase to 50 per cent by 2030.

Article content

However, none of the electric vehicles entering Canada in 2026 will be required to meet this threshold, meaning it may take time before lower-cost models become widely available.

Article content

Not everyone is happy about the introduction of Chinese EVs. Ontario Premier Doug Ford previously called on Canadians to boycott Chinese-made vehicles.

Article content

In an X post, he said: “Make no mistake: China now has a foothold in the Canadian market and will use it to their full advantage at the expense of Canadian workers.”

Article content

Still, the Rates.ca survey found 56 per cent of respondents who were either unsure or interested in purchasing an EV would consider a Chinese-built model.

Article content

There are also incentives encouraging consumers to buy Canadian-made EVs.

Article content

The Electric Vehicle Affordability Program (EVAP), introduced by the federal government in February 2026, offers rebates of up to $5,000 for battery-electric and fuel cell electric vehicles, and up to $2,500 for plug-in hybrid vehicles.

Article content

EVAP eligibility is capped at $50,000, unless the vehicle is Canadian‑built.