Pain at the pump sends Canadians racing toward EVs and hybrids

High prices at the gas pump are changing how Canadians shop for cars. Global News reported that March vehicle sales and search data from various sources indicate that shoppers are turning their attention to electric and hybrid vehicles amid elevated gas prices, with no end in sight.

What's happening?

Even as overall new vehicle sales declined by 6.6% in March year-over-year, demand for EVs and plug-in hybrids surged, per Global News. Statistics Canada revealed the combined sales rose by nearly 75% compared to the previous year. That translated to a sharp rise in market share from 6.6% in March 2025 to 12.2% in March 2026.

Search interest told much of the same story. Global News noted that Rates.ca, a car insurance quote provider, saw EV insurance quote searches 40% above last year's level. Preowned vehicle platform Clutch said EV searches on its site were up 54% since the start of the Iran war.

Why does it matter?

For many households, paying for gas is one of the most visible and frustrating day-to-day expenses. When prices spike, drivers feel it right away, especially commuters and families that depend heavily on their vehicles.

The natural reaction for drivers is to look for an alternative that can insulate them from rising gas prices. EVs and hybrids are attractive options in this respect. Even before the war, many drivers could access major fuel savings by charging at home.

While a war isn't the most ideal development to push drivers to cleaner vehicles, wider adoption is a positive for the local community. Studies show that increased EV adoption reduces air pollution. It also lowers dependence on highly polluting and unpredictable fuel sources like oil.

What can I do?

For drivers feeling squeezed by fuel prices, this trend points to a few practical steps. If you're in the market for a vehicle, comparing gas-powered models with EVs and plug-in hybrids may make more sense now than it did a year ago.

It can also help to look beyond the sticker price. Fuel savings, maintenance needs, and insurance costs all shape what a vehicle actually costs to own. That's why rising searches for EV insurance quotes may be an early sign that shoppers are doing more detailed math. Used vehicles may also be part of the equation and a budget-friendly option for many drivers.

For people who aren't prepared to go fully electric, a plug-in hybrid will still reduce trips to the pump while offering the familiarity of a gas backup. 

The data from Canada indicate unambiguously that residents want to "actively explore" alternatives to gas-powered vehicles, as Clutch CEO Dan Park told Global News.

"We're seeing the relationship to rising gas prices and interest in EVs clearly in the data," Park said.

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