March 2026 data from Statistics Canada reveals that 21,574 zero-emission vehicles were sold around the country, an increase of 74.7% year-over-year. ZEVs represented 12.2% of all new vehicle sales, up from 6.5% the year prior. This reflects strong and growing consumer demand for EVs, reinforced by rising fuel costs and renewed federal incentives. 

Meanwhile, Honda has announced the indefinite suspension of its planned $15 billion EV and battery manufacturing project in Ontario, citing evolving business conditions, changes to its strategy, and shifting customer demand.  

Other automakers continue to bring new electric models to market and expand production, underscoring that the broader industry is still moving forward with electrification. While Honda points to market uncertainty, its EV strategy has lagged behind peers, with a greater focus on conventional hybrids and delayed EV program rollouts. 

Importantly, none of the public funding committed to this project has been disbursed. 

Honda’s announcement should be understood as a company-specific strategic decision, not evidence of weakening EV demand in Canada.