Canadian Consumers Show Growing Preference for Gas-Powered Vehicles Over Electric Cars
A comprehensive new report indicates that Canadian consumers are increasingly leaning toward purchasing vehicles with internal combustion engines rather than electric vehicles for their next automotive acquisition. The findings highlight a significant shift in consumer sentiment, with affordability emerging as the dominant concern influencing these preferences.
Substantial Decline in Electric Vehicle Interest
According to data collected from EY's 2025 Mobility Consumer Index, a striking 58% of respondents expressed a preference for buying a car with an internal combustion engine within the next two years. This represents a notable 14% increase from the previous report conducted in 2024. In contrast, only 7% of respondents indicated they would choose an electric vehicle, marking a substantial 15% decline from earlier findings.
The report identifies several key factors driving this consumer shift away from electric vehicles. Nearly one-third (32%) of respondents cited vehicle pricing as a primary barrier, noting that entry-level pricing for electric vehicles remains in the $40,000 range. Additionally, consumers expressed concerns about charging reliability, charging confidence, and the overall practicality of electric vehicles compared to their gasoline-powered counterparts.
Government Policy Impacts Consumer Decisions
Government incentives and policy changes have played a significant role in shaping consumer preferences. The report found that 30% of Canadians hoping to purchase a vehicle soon are delaying or reconsidering an electric vehicle purchase following the federal government's decision to pause the zero-emission vehicle incentive program in January 2025. This policy shift has contributed to the growing hesitation among potential electric vehicle buyers.
Sara Ganowski, a senior manager at EY, explained to The Canadian Press that the report captures a clear shift among consumers who are prioritizing affordability in their purchasing decisions. "Our research shows that the affordability theme was central," Ganowski stated. "Especially given economic uncertainty and the realities of cost of living today, incentives help."
Potential for Future Reversal
Despite the current trends, Ganowski suggested that consumer preferences could change in the coming year. The federal government recently reintroduced an electric vehicle incentive program and announced investment plans for charging infrastructure development. These initiatives "could target some of the barriers" that consumers highlighted in the report, potentially making electric vehicles more accessible and appealing to Canadian buyers.
The federal government replaced its previous electric vehicle rebate program with an electric vehicle affordability program last month. This new initiative allows for incentives of up to $5,000 on vehicle purchases with a final value of $50,000 or less, directly addressing some of the cost concerns expressed by consumers.
The report's findings underscore the complex interplay between consumer preferences, economic factors, and government policy in shaping the automotive market. As affordability remains a central concern for Canadian consumers, the future adoption of electric vehicles will likely depend on continued efforts to address pricing barriers and infrastructure limitations.
