2025 is already shaping up to be a transformative year for Canada’s car market.
With shifting consumer priorities and technological advancements, Canadians choose vehicles that align with their budgets and lifestyles—along with other factors, like commute times, and family and career responsibilities.
The automotive industry has seen a steady recovery since the post-pandemic dip. Car sales in Canada surged by 12% in 2023, followed by an 8.2% increase in 2024—normalising sales for the first time since 2022.
US-made vehicles dominated the market in 2024, with General Motors and Ford leading the way. Compact SUVs remained the best-selling type of vehicle, offering a winning combination of practicality, comfort, and value. Meanwhile, electric cars continue to grow in popularity, becoming more affordable and accessible thanks to improved charging infrastructure nationwide.
However, rising living costs and inflation are reshaping consumer behaviour. Luxury car sales have dropped significantly as affordability becomes a top concern. Passenger cars also reached a historic low, making up just 13.2% of total sales.
Here’s what to expect from Canada’s most popular vehicles in 2025.
Commuter cars, such as sedans, are generally driven in urban areas and on highways. They are smaller, fuel-efficient, and some of the most affordable cars on the market.
A reliable classic, Honda Civics are loved by many due to their fuel efficiency, good performance (for a small car), exceptional handling and great resale value.
Both 2025 sedan and hatchback options feature improved fuel efficiency, the Honda sensing suite, automatic high beam headlights, and a collision mitigation braking system.
Honda offers a Hybrid model in 2025, with 22 km/l in the city and 19 km/l on the highway, almost doubling the efficiency of the 2024 models.
Price from CA$38,066
Apparently, Corollas last forever. It's still common to see models from the 1990s cruising the streets of Canadian towns and cities. The 2025 design is not much different than the previous year. Because why change a perfect car?
Eight models are available in sedan and hatchback body styles, with either a 2.0-litre four-cylinder engine or a hybrid system with available AWD.
The 2025 Toyota Corolla in Canada has a fuel efficiency of 7.4 l/100 km in the city and 5.7 l/100 km on the highway. The hybrid models offer almost twice as much efficiency!
Price from CA$47,915
Nissan’s Sentra is known for its affordability, and highway fuel economy. The 2025 model has a surprising level of comfort and spaciousness for a compact sedan. Its safety features have also seen an upgrade
The 2025 Nissan Sentra in Canada has a fuel economy of 9.4 l/100 km in the city and 6.4 l/100 km on the highway.
Price from CA$23,898
Canadians are known to love outdoor adventure and exploring. Luckily, there’s no shortage of wilderness to explore in Canada.
Most of Canada’s back roads and National Parks require an AWD or 4WD vehicle.
Compact SUVs offer an alternative to big trucks, providing superior manoeuvrability and better fuel economy. Guaranteed to fit the whole family! (Also popular among soccer moms.)
Here is another car that appears everlasting, models from the 1990s are still trucking along with relatively few issues. Toyota offers hybrid versions of the RAV4, making back-road adventuring (or travel and commuting) more affordable.
Rav4s are known to get you out of any adverse mud or snow situation, providing versatility, safety and comfort for the whole family. New features for the 2025 model include upgraded safety features, a hands-free power liftgate, and a panoramic glass roof.
The 2025 Toyota RAV4 in Canada gets 8.7 l/100 km in the city and 6.9 l/100 km on the highway. Hybrid models average around 5.8 l/100 km in the city and 6.3 l/100 km driving on the highway.
Price from CA$36,620
Honda’s CRV boasts many of the same great qualities as the RAV4—good fuel economy, versatility, longevity and comfort.
New features for the 2025 model include a hybrid version, low-speed automatic braking, and front and rear parking sensors.
The 2025 Honda CR-V in Canada gets 7.8–8.4 l/100 km combined, depending on whether it has a front-wheel or all-wheel. The CR-V Hybrid gets 6.4 l/100 km combined.
Price from CA$35,725
Mazda’s CX-5 is for drivers who want luxury, without breaking the bank. The CX-5 is known for its quality interior, high comfort level, smooth driving and powerful engine.
The signature Skyactiv-X engine combines the best features of gasoline and diesel engines. It uses Spark-Controlled Compression Ignition (SPCCI) technology, which allows the engine to ignite the air-fuel mixture using compression, like a diesel engine while using a spark plug for stability and control when needed.
The 2025 Mazda CX-5 has a fuel economy of 10.2 l/100 km in the city and 8.2 l/100 km on the highway.
Price from CA$32,550
Whether it’s for towing a boat or trailer, hauling a dead tree out of the forest for firewood, or off-roading to your favourite sledging spot, there’s nothing more useful (or powerful) than a huge truck.
Known for its powerful engines, robust towing capabilities and spacious interiors, the Ford-150 is North America’s favourite truck.
The 2025 model features BlueCruise 1.2, an advanced driver-assistance feature that allows hands-free highway driving. It also has a 12-inch touchscreen display. Engine options include a 2.7l EcoBoost V6, a 3.5l EcoBoost V6, a 3.5l PowerBoost Full Hybrid V6, and a 5.0l Ti-VCT V8.
Fuel economy depends on the engine, averaging 10-12 l/100 km combined.
Price from CA$59,995
GMC Sierras are known for their luxurious interiors, the MultiPro tailgate, and off-roading capabilities. They boast longevity and multiple configurations to suit the driver's needs.
The 2025 model offers 22-inch wheels, 10-speed automatic transmission, and a 5.3l EcoTec3 V8 engine. Fuel economy is 14.9 l/100 km in the city and 11.7 l/100 km on the highway.
Price from CA$45,999
Luxury vehicles are made for those who value a feeling of prestige and exclusivity.
These high-end cars are top quality, leading in comfort and aesthetics, and are the best-performing vehicles on the market.
With exceptional engineering, cutting-edge technology and luxurious comfort, BMWs have an excellent resale value. The X5 model is known for its driving performance, precise steering and handling, and notable engine power for a car of that size.
There is a long list of new features in the 2025 model. These include the BMW curved display, powered by the OS 8.5 with the Intelligent Personal Assistant and remote software upgrades. Tech features include wireless Apple CarPlay and Android Auto. Wireless device charging makes it even easier to keep your phones charged. Dual-zone automatic climate control keeps you effortlessly comfortable and the remote start option adds to overall convenience.
The 2025 BMW X5 has a fuel economy of 9.4–12.3 l/100 km, combined city and highway.
Price from CA$87,100
Electric cars are becoming increasingly popular, and the Tesla Model 3 is a more affordable luxury model. Teslas are highly regarded for their advanced technology, long electric range, quick charging, minimal operating costs, and sleek design. They also appeal to those looking to lower their carbon footprint.
2025 upgrades include a new battery pack in the Rear-Wheel Drive model, a lighter model altogether, improved performance, an Apple Watch app where your watch becomes a digital key, and the ability to view security videos from your smartphone.
One charge gets an estimated 550–584 km of driving.
Price from CA$50,990
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