CANADA’S EV REPAIR PICTURE TRENDS FOR 2025

HIGHER OEM-PARTS USE, LONGER CYCLE TIMES AND FEWER TOTAL LOSSES ARE RESHAPING ESTIMATES AND SCHEDULING.

The electric-vehicle landscape in Canada continues to evolve rapidly, presenting opportunities and challenges for the collision repair industry. A striking trend is the steady rise in the share of repairable vehicles identified as battery-electric vehicles (BEVs).

In Q2 2025, repairable BEV claims reached 4.83 per cent, a 23 per cent year-over-year increase. That follows a Q1 frequency of 4.48 per cent, 31 per cent higher than in Q1 2024. The trajectory contrasts with the United States, where the BEV claims frequency fell to 2.92 per cent in Q2 2025—the first decline after many quarters of growth. The divergence suggests Canadian collision repairers will continue to face rising BEV repair demand while their American counterparts may see some relief.

According to Electric Mobility Canada’s most recent market-outlook report, BEV adoption is projected to accelerate further despite recent incentive fluctuations, with EV sales potentially reaching 20 to 25 per cent of new-vehicle sales by 2030, even with minimal government support. This continued growth trajectory means collision repairers must accelerate their preparation efforts.

British Columbia and Quebec remain Canada’s EV-adoption leaders, and that is reflected in their collision statistics. British Columbia recorded the highest repairable-claims frequency at 8.51 per cent in Q2 2025 (up from 8.01 per cent in Q1), while Quebec followed closely at 8.13 per cent (up from 7.88 per cent). These provincial frequencies are notably higher than California’s 6.25 per cent, which leads the U.S. market, highlighting Canada’s accelerated EV adoption in certain regions.

Infrastructure expansion has also shaped EV-adoption patterns that influence collision volumes. Natural Resources Canada (NRCan) data indicate a 24 per cent year-over-year increase in public charging infrastructure, with British Columbia and Quebec maintaining their leadership in charger density. This expanded infrastructure encourages higher EV use, potentially contributing to the higher claims frequencies observed in these provinces.

While repair costs for BEVs have shown modest improvement, they remain substantially higher than for conventional vehicles. In Q2 2025, the average severity for repairable BEVs in Canada was C$6,633, compared with C$5,156 for internal combustion engine (ICE) vehicles—a 29 per cent gap. This continues to challenge insurers setting appropriate premiums and collision centres managing repair economics.

Tesla vehicles still represent the majority of BEV collision repairs in Canada, though market dynamics are shifting. In Q2 2025, the Tesla Model 3 accounted for 27.41 per cent of all BEV repair claims (up from 26.16 per cent in Q1), while the Model Y represented 25.99 per cent (up from 24.09 per cent). Combined, these two models made up more than 53 per cent of all BEV collision repairs in Canada during Q2. However, Tesla’s dominance may be waning: the company has reportedly fallen to eighth place among likely shoppers, down 16 per cent according to recent consumer data.

BEV repairs exhibit distinct characteristics compared with ICE vehicles on several key metrics:

• OEM-parts utilization is significantly higher (87.88 per cent vs. 63.65 per cent for ICE vehicles).

• A slightly lower share of parts are repaired rather than replaced (12.43 per cent vs. 13.89 per cent).

• Total-loss frequency is much lower (10.70 per cent vs. 22.90 per cent).

These statistics reflect the specialized nature of BEV repairs and the higher value of electric vehicles, which often makes repair economically viable even where conventional vehicles might be written off. Additionally, BEVs take longer to repair due to the added complexities of electrified propulsion systems. Over the past three years, Mitchell’s keys-to-keys cycle-time data show BEVs take, on average, a full day longer to repair than ICE vehicles during the same period.

While much attention focuses on fully electric vehicles, mild hybrids represent a significant—and growing—segment for collision repairers. The share of repairable vehicles classified as mild hybrids reached 4.33 per cent in Q2 2025, up 24 per cent year over year. With average repair costs of C$5,742—well below BEVs—mild hybrids offer a middle ground that blends more familiar repair processes with steadier market growth, potentially providing a more predictable business segment for collision centres.

As we move through the second half of 2025, collision repairers in Canada must keep adapting to the growing proportion of electric vehicles in their repair mix. Investments in training, equipment and facility modifications remain essential, particularly in British Columbia and Quebec. The Automotive Industries Association of Canada noted in 2022 that only about five to 10 per cent of collision repair facilities were equipped to handle BEV repairs.

The rising volume of repairable vehicles with electrified powertrains indicates that even if new-BEV sales face headwinds from changing incentives, the existing fleet will continue to generate substantial repair volume. Shops that have prepared for this shift will be well positioned to capture this growing segment of the collision repair market, even as the economics and technical requirements of these repairs continue to evolve.