Deep dive into Canada's EV market: types, benefits and incentives

Did you know there are three basic types of Electrified Vehicles?

First, there’s the classic hybrid electric vehicle (HEV) you’ve been hearing about in the news for decades. As the word suggests, it combines different systems, hybridizing traditional gasoline power with other propulsion from an electric battery. HEVs replenish that (electric) battery with regenerative braking converting kinetic energy, plus with power from the internal combustion engine (ICE). In short HEVs can deliver fantastic fuel economy, but you need gas to drive one.

At the other extreme, there’s the battery electric vehicle (BEV), which takes zero gasoline. They run fully on a huge electric battery which sits beneath the floor, anchoring the ride. You can charge a BEV by plugging in at home using a Level 1 or Level 2 charger that plugs into a 120- or 240-volt electrical outlet. You can also recharge by plugging into a Level 2 or Level 3 (DC fast charging) public charging station. These can be found at many highway service stations, local gas stations, retailers and municipal buildings. Some high-speed chargers can replenish a battery to 80 per cent within 20 to 60 minutes. Typically, you’d plan a re-charging visit, integrating with an app on your phone.

Between these two types of partial and fully electrified vehicles lies the plug-in hybrid electric vehicle (PHEV).

Like the basic hybrid, it blends electric and gasoline power, but as the suffix suggests, you plug this one in to revive the battery power. And like the BEV, it comes with a charger that you can plug in – or you can use certain types of rechargers at public stations.

Ultimately, making the best decision for which EV technology to adopt depends on your driving needs, the distances you travel and budget. Here’s a breakdown:

Reasons for buying any type of EV vary. Many people consider EVs to be eco-conscious choices, meaning they’ve purchased them to emit less greenhouse gas… or none at all, depending on your choice of the options. That’s the ecological decision: there’s little or no pollution while driving. For other owners, eco may well mean economical, which we’ll discuss a bit later.

In electric mode, EVs also produce almost no noise pollution. Without an engine revving, they’re functionally silent and manufacturers actually had to develop noises to make them noticeable to distracted pedestrians and cyclists.

Other reasons for making the switch? Some of Canada’s provincial governments offer rebates to incentivize the swap to EVs. There are also rebates available for installing home charging stations in some provinces.

At the moment, only Vancouver has tried implementing–and reversing–a congestion charge, but it would come as no surprise if other big cities with significant traffic issues start experimenting with incentives for drivers to change habits. Free or cheaper access for EVs in the centre of town is a powerful incentive.

Beyond the environmental and cost benefits, EVs offer a fundamentally different—and often superior—feeling behind the wheel. Here are four of the factors that make a great driving experience in an EV:

1. Precision Control (One-Pedal Driving)

Most EVs utilize Regenerative Braking, which transforms the way you navigate traffic.

• How it works: When you lift your foot off the accelerator, the motor reverses to capture energy, slowing the car down immediately.
• The Benefit: In many models, you can come to a complete stop without ever touching the brake pedal. It makes stop-and-go traffic significantly less fatiguing.

2. The "Gamification" of Efficiency

EVs turn conscious driving into a rewarding challenge.

• Real-Time Data: High-definition dashboards provide constant feedback on your energy consumption.
• Addictive Efficiency: Many drivers find themselves "playing a game" with the car’s software—trying to maximize their range and "green" score through smoother driving habits.

3. "Slingshot" Performance

Even the most modest-looking electric SUVs offer performance specs that rival older sports cars.

• Instant Torque: Because there are no gears to shift through, you have access to 100% of the electric motor's power the moment you press the pedal.
• The "Slingshot" Effect: This provides a safety advantage, allowing you to merge or escape tight traffic situations with "point-and-shoot" acceleration.

4. Better Handling by Design

Because the heavy battery packs are mounted low in the chassis (the "skateboard" design), EVs have a low center of gravity.

• The Result: Even large EVs feel "planted" and stable. They hug corners with significantly less body roll than a traditional gas vehicle, leading to a much more composed and confident ride.

Of course, we can’t know for sure why 94.7 per cent of new vehicle registrants chose internal combustion engine vehicles in 2021 instead of EVs but, over the past decade, we’ve all heard the expression “range anxiety”. Yet much louder these past two years have been the complaints about inflation, especially regarding gasoline pricing. Both of these topics offer the greatest argument for choosing a PHEV.

They’re no panacea; PHEVs usually have a limited range on purely electric power. But let’s say it’s a 61-km range–such as what’s offered in the 2025 Mitsubishi Outlander PHEV–and you live 20 km from work. You could live without needing gasoline to drive to work ever again. Just plug the vehicle in when you get home.

So PHEVs minimize the need for expensive and highly taxed gasoline. As a bonus, if you’re charging at night in many parts of the country, you’re also getting power at a reduced rate.

What about when you’re not driving to or from work but instead to Granny’s house 600 km away? That’s when you dip into the PHEV’s gasoline power. Many BEVs don’t extend to such range, so owners need a planned extended stop to recharge, perhaps more than once. With a PHEV you can just drive it like a traditional ICE vehicle. So long, range anxiety.

In the current landscape, the Canadian EV market is defined by a strategic shift toward reliability and pragmatism. Here is an outlook on the three key directional trends:

Robust Infrastructure Expansion

The "range anxiety" of previous years is being systematically addressed through a massive, co-ordinated rollout of charging networks. The federal government, through programs like the Zero Emission Vehicle Infrastructure Program (ZEVIP), has pivoted toward high-visibility installations in "charging deserts" and rural corridors. Beyond just highway fast-chargers, there is a new focus on "Right-to-Charge" initiatives for multi-unit residential buildings (MURBs), ensuring that Canadians living in apartments and condos have the same home-charging convenience as suburban homeowners.

A Shift Toward Gradual, Pragmatic Adoption

While the initial surge of "early adopters" has leveled off, the market has entered a phase of steady, gradual growth among mainstream buyers. This shift was underscored in late 2025 and early 2026 when the federal government adjusted its ZEV mandates to better align with supply chain realities and consumer affordability.

The Continued Relevance of PHEVs

In a country as geographically vast as Canada, the PHEV has solidified its role as the essential bridge technology. While some manufacturers are moving toward purely electric lineups, many Canadian consumers are doubling down on PHEVs as a safeguard against extreme winter temperatures and long-distance travel. The PHEV is no longer seen as a temporary compromise, but as a permanent fixture for the "one-car household" that requires 40 to 60 kms of electric range for the daily commute without sacrificing the 800-km autonomy needed for a cross-provincial drive.

Choosing between the various levels of electrification isn’t about finding the best technology in a vacuum — it’s about matching a vehicle to your specific lifestyle. The gap between these choices has narrowed, but the distinct personalities of each remain.

• Choose a BEV if: You can charge at home, you want the lowest maintenance, and you want to "never visit a gas station again."
• Choose a PHEV if: You have a short commute but take frequent long trips, and you aren't ready to rely 100% on public charging infrastructure.
• Choose a HEV if: You cannot charge at home (apartment living), you want a significant range, and you want the lowest upfront purchase price.

Ultimately, your choice marks a shift from being a passive consumer of fuel to an active manager of energy. Whether you choose the total freedom of a BEV or the versatile safety net of a PHEV, the result is the same: a more controlled, responsive, and conscious way to move.