Canadians could have access to more affordable, in-demand electric vehicles (EVs) selling for under $40,000 if models sold in Europe are allowed into the country’s auto market, a Clean Energy Canada report suggests.

In Missing Out, the Vancouver-based think tank found Europe has 21 EVs selling for less than the equivalent of $40,000. The list covers vehicles ranging from the $21,044 Dacia Spring Electric 45 to the $39,834 BYD ATTO 2. Only one of those EVs, the $36,727 Fiat 500e, is currently offered for sale in Canada.

Contrary to the assumption Chinese EVs would dominate the list, Clean Energy Canada found only one third of the 21 vehicles are manufactured by Chinese companies. Of the remaining 14 models, 10 are made by European automakers, three by Japanese companies and one by a South Korean firm.

The report comes as EV advocates are pushing for the Canadian government to allow electric cars deemed safe by European standards to be more easily sold in Canada.

“I think we wanted to stoke the imagination a little bit there and just give people a more visual illustration of what a policy change like this could actually mean,” Trevor Melanson, the communications director at Clean Energy Canada and one of the authors of the report, said in an interview with Sustainable Biz Canada.

If European EVs were sold in Canada, it would open “the gate to a bunch of electric cars at a price point that is just missing” in the country, he said.

Which sub-$40,000 EVs are Canadians missing?

Clean Energy Canada chose the $40,000 price point because market research showed it is an important threshold, Melanson explained.

A survey of the Greater Toronto and Hamilton Area and Metro Vancouver undertaken between November 2024 and January 2025 found only 27 per cent were willing to spend over $40,000 on a new EV. Just under half (49 per cent) said they were open to purchasing an EV under $40,000.

The most affordable EVs in Canada cost over $40,000, according to Canada Drives. The Mini Cooper SE just crosses the line at $40,990, with most in the $45,000 range. The Chevrolet Bolt, which was the most popular non-Tesla EV in Canada at one point, used to fit in the sub-$40,000 price range but had production paused in 2023.

To compare prices, Clean Energy Canada took data from the EV Database in euros and converted to Canadian dollars. The vehicle prices were based on those in Germany, or when not available, the Netherlands. The sales tax was deducted from prices.

The think tank was left with 21 models, primarily economy cars on the smaller end. However, some small SUVs made the cut.

Three EVs have a range less than 300 kilometres, such as the $23,534 Leapmotor T03. But the majority have a range over 300 kilometres, and a handful exceed 400 kilometres like the $38,838 Opel Frontera Extended Range. The $33,621 BYD Dolphin Surf 43.2 kWh Comfort topped the charts with 499 kilometres of range.

Clean Energy Canada said the report is illustrative, as retail prices and availability of vehicles depends on automakers.

Smaller EVs ‘make a whole lot of sense’ for Canadians

While the smaller range may turn off Canadians who are more accustomed to longer drives than Europeans, Melanson noted the two areas covered by the survey account for over a quarter of Canada’s population, and most Canadians live in cities. There is likely not a drastic difference in demand between Toronto or Winnipeg, he said.

“Where most Canadians live, these vehicles make a whole lot of sense.”

Though an SUV was the more popular choice for a next vehicle purchase compared to a sedan/hatchback according to the survey (38 per cent against 32 per cent), it was not significantly ahead, Melanson said.

The survey also found Canadians aged 18 to 29 showed more interest in a sedan/hatchback, with 36 per cent preferring one over the 30 per cent who chose an SUV.

Lowering trade barriers, matching European safety standards

Without increased access to cheaper EVs, fewer Canadians will get one, which will hinder the transition, Melanson said.

EV adoption rates have shown signs of slowing down in Canada in Q2 due to concerns over affordability, and many financial incentives being axed or wound down across the country.

Clean Energy Canada recommends several solutions to increase access to affordable EVs. It urges the federal government to lower the 100 per cent tariff on Chinese-made EVs, bring back consumer incentives and maintain the EV Availability Standard.

Another suggestion is for Canada to harmonize with European vehicle safety standards so they can be marketed in Canada.

“There’s a bunch of tools on the table,” Melanson said, “and the government could start using them and improve the affordable EV market in Canada.”