The Globe and Mail reports in its Friday, May 15, edition that Honda may be reevaluating its electric-vehicle production plans in Canada, even as EV demand appears to be on the upswing. The Globe's Matt Lundy reports that in March, new zero-emission vehicle sales reached about 21,500, a 75-per-cent increase from last year and the highest since late 2024. Zero-emission cars accounted for about 12 per cent of all new vehicle sales in March, an improvement over last year but still below peak levels.
The EV market is getting a boost from federal consumer incentives reinstated in February, offering up to $5,000 for battery-electric and fuel-cell EVs. Ottawa has allocated $2.3-billion over five years, likely increasing demand.
Another consideration for vehicle shoppers is gasoline. Those prices have surged over the past couple months, owing to the Iran war.
But while consumer interest in EVs is perking up, the Canadian auto industry is under duress as it contends with U.S. tariffs and the high-stakes review of the North American trade pact later this year. Total auto production in Canada fell by 5.4 per cent in 2025 from 2024, according to a report from Toronto-Dominion Bank.
© 2026 Canjex Publishing Ltd. All rights reserved.