A strong majority of Canadian consumers are now prioritizing where their next vehicle is built, with nearly three-quarters stating it is important that their car or truck be assembled domestically, according to a revealing new poll.
Economic Concerns Drive Consumer Preferences
The survey, conducted by KPMG Canada, found that 72 per cent of Canadians believe it is important their next vehicle is assembled or built in Canada. This sentiment emerges against a backdrop of industry uncertainty and growing consumer awareness of economic impact.
Dave Power, partner and national automotive sector leader at KPMG Canada, explained the shift. "With U.S. tariffs disrupting the industry, Canadians in the market for a new vehicle are looking to the brands they trust at prices they can afford in models they want and, increasingly, on where those vehicles are built," he said in a press release.
The poll indicates that affordability remains a paramount concern, intertwined with this new focus on origin. 76 per cent of respondents expressed worry that ongoing trade tensions and tariffs will lead to sharply higher prices, potentially making new vehicles unaffordable.
Trust Shifts Toward Brands with Canadian Footprints
Power noted that car brands with significant manufacturing operations in Canada, such as Toyota and Honda—both of which have large plants in Ontario—currently resonate most strongly with consumers. This preference is partly driven by a perceived positive economic impact on the country.
Conversely, the survey suggests trust in the traditional Detroit Three automakers is beginning to erode. Canadians perceive a lack of commitment to keeping jobs in Canada, a trend influenced by U.S. trade policies and corporate pressures to move operations south of the border.
As a result, the public is increasingly calling on the government to prioritize domestic manufacturing, job security, and long-term resilience, positioning Canada as a leader in the future of electric vehicles and battery production.
Price Sensitivity and Market Realities
The KPMG survey, which polled 2,000 Canadians aged 18 to 85 online between November 7 and 17, 2025, also painted a detailed picture of consumer spending limits and fears.
62 per cent of Canadians stated they will not spend more than $50,000 on a new automobile, a notable decrease from 75 per cent who held that view in 2022. The breakdown shows 39 per cent plan to spend between $30,000 and $50,000, while 23 per cent have a firm ceiling of $30,000.
Alarm over potential price hikes is widespread. 72 per cent of Canadians are concerned that vehicle prices will rise if Canada's auto industry loses protections under the Canada-U.S.-Mexico Agreement (CUSMA), which is scheduled for review next year. Furthermore, 38 per cent said another 10 to 15 per cent price increase would push them out of the new vehicle market entirely, and 23 per cent feel tariffs have already priced them out.
The data underscores a market in flux, where six in 10 Canadians say they are in the market to buy a new vehicle within the next five years. Their decisions will be guided not just by model and affordability, but increasingly by a vehicle's country of assembly and its contribution to the Canadian economy.
