The Canada SUV Sales 2025 report shows a clear trend—SUVs are no longer just popular, they are dominating the Canadian auto market. Families, young professionals, and even businesses are increasingly choosing sport utility vehicles over sedans and compact cars.
With their mix of space, comfort, and versatility, SUVs have become the all-rounder vehicle for Canadian lifestyles. Automakers are also flooding the market with new hybrid and electric SUV options, making them even more appealing in 2025.
So, which models are leading the sales charts, and why do Canadians love SUVs so much?
How Big Is the SUV Market in Canada in 2025?
SUVs account for nearly 60% of all new car sales in Canada this year. That’s a major jump compared to just a decade ago when sedans dominated.
Automakers like Toyota, Hyundai, Honda, and Ford are reporting record-breaking demand for their SUV lineups. Even luxury brands such as BMW, Mercedes, and Lexus see SUVs outselling traditional cars.
The trend cuts across provinces, with Ontario, Quebec, and BC showing the strongest appetite for family and crossover SUVs.
Which SUVs Are the Best-Selling Models?
Several models have emerged as clear favorites in 2025.
The Toyota RAV4 continues to be Canada’s best-selling SUV thanks to its reliability, fuel efficiency, and hybrid options. The Hyundai Tucson and Honda CR-V are close competitors, offering affordability and tech-loaded interiors.
Among larger SUVs, the Ford Explorer and Chevrolet Equinox remain strong choices for families needing space. On the premium end, the Lexus RX and BMW X3 dominate luxury SUV sales.
Why Do Canadians Prefer SUVs Over Sedans?
The reasons go beyond just looks.
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Practicality: SUVs offer more cargo space and flexible seating.
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Safety: Higher driving positions make many drivers feel more secure.
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Weather Adaptability: With AWD and higher ground clearance, SUVs handle snow and icy conditions better.
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Resale Value: SUVs retain value longer than most sedans.
In a country with long winters and family-centered lifestyles, SUVs tick almost every box.
What Role Do Hybrid and Electric SUVs Play in 2025?
Green SUVs are gaining serious ground this year.
The Toyota RAV4 Hybrid remains one of the most in-demand vehicles. The Hyundai Ioniq 5 and Kia EV6 are proving that EV crossovers can be stylish and practical. Tesla’s Model Y also dominates the electric SUV segment.
Government rebates and expanding charging infrastructure are pushing more buyers toward eco-friendly SUVs, making 2025 a turning point for sustainable mobility in Canada.
How Do SUVs Compare on Costs?
While SUVs generally cost more upfront, buyers see value in long-term use.
Compact SUVs like the Honda CR-V are fuel-efficient and affordable to insure. Midsize SUVs, although pricier, often replace both a sedan and a minivan in family households. Luxury SUVs command higher premiums but attract buyers who prioritize comfort, status, and advanced safety tech.
Even used SUV sales are rising, with demand pushing resale prices higher in 2025.
Are SUVs Impacting Other Vehicle Segments?
Yes, SUV dominance is reshaping the auto market.
Sedan sales continue to shrink, with many automakers reducing their sedan lineups. Compact hatchbacks are also losing ground, especially in urban areas where smaller SUVs are replacing them. Pickup trucks remain strong in rural markets, but SUVs are increasingly preferred by urban families and professionals.
What Trends Define SUV Sales in 2025?
Several trends stand out this year.
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Compact SUVs are now the entry-level choice for most first-time buyers.
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Hybrid and EV SUV sales are growing faster than petrol-only models.
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Luxury SUVs are seeing record demand, especially in Ontario and BC.
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Families are choosing 7-seater SUVs over traditional minivans.
These patterns show that SUVs are not just a fad—they’re shaping the future of the Canadian auto market.
What Should Buyers Consider Before Choosing an SUV?
Not all SUVs are created equal, and buyers need to assess their needs.
Compact SUVs work best for city drivers who want fuel efficiency and easy parking. Midsize SUVs are ideal for growing families needing extra space. Full-size SUVs are suited for those who regularly drive long distances or carry heavy loads.
It’s also important to check fuel economy, insurance costs, and long-term maintenance before making a purchase.
Conclusion
The Canada SUV Sales 2025 report makes one thing clear: SUVs are now Canada’s favorite vehicles. From compact crossovers to luxury models, they dominate sales charts, reshape market trends, and adapt perfectly to Canadian lifestyles.
With more hybrid and electric SUVs entering the market, buyers have greener options without sacrificing space or comfort. For Canadians, SUVs in 2025 are more than just vehicles—they’re the ultimate balance of practicality, safety, and style.
FAQs
Which SUV is the best-selling in Canada in 2025?
The Toyota RAV4 remains the top-selling SUV due to reliability and hybrid options.
Why are SUVs so popular in Canada?
Because of cargo space, safety, all-weather capability, and resale value.
Are electric SUVs popular in 2025?
Yes, models like the Tesla Model Y, Hyundai Ioniq 5, and Kia EV6 are gaining traction.
Do SUVs cost more to maintain?
Generally yes, but many compact SUVs remain affordable in insurance and fuel costs.
Are sedans losing popularity in Canada?
Yes, sedan sales continue to drop as compact and midsize SUVs replace them.
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