Canadian auto sales showed surprising resilience in February as dealers navigated winter weather, economic uncertainty and shifting policy signals.
According to DesRosiers Automotive Consultants (DAC), February sales came in at just under 122,000 units, a decline of 0.2 per cent from February 2025 but still a solid result given the broader economic backdrop. The seasonally adjusted annual rate (SAAR) reached 2.00 million, slightly below January but stronger than anything recorded during the third or fourth quarters of 2025.
DAC noted that a combination of difficult winter conditions, trade tensions and broader economic challenges continues to shape the Canadian vehicle market. Even so, the February result suggests underlying demand remains stable.
The month also brought significant developments on Canada’s zero-emission vehicle policy framework. More than a year after the collapse of the federal iZEV incentive program, Ottawa announced a replacement initiative known as EVAP, which will offer $5,000 incentives for electric vehicles priced under $50,000.
At the same time, the federal government repealed the country’s zero-emission vehicle sales mandates and replaced them with greenhouse-gas emissions standards for automakers.
“Details of the new targets remain sparse but we sincerely hope that substantial changes are made from the initial talking points,” said Andrew King, Managing Partner of DAC, in a statement. “Given the U.S.’s blinkered and backward direction, Canada does indeed need to chart its own course on the ZEV front —but it needs to be a course based in pragmatism and realism rather than aspirational fantasy.”
DAC said further analysis of the new policy framework will follow in future releases.
