Canadian consumers’ interest in EVs declines

Canadian consumers have shifted their preference back towards internal combustion engine (ICE) vehicles, according to the EY Mobility Consumer Index report. The Big Four firm surveyed over 1,000 Canadians in 2025 to gauge attitudes towards vehicle purchases and technology preferences.

The report found Canadians’ preference towards ICE vehicles rose to 58% (up from 44% in 2024) while battery electric vehicle (BEV) preference declined to 7% from 15%. Hybrids remained the most preferred alternative powertrain at 17%.

Meanwhile, approximately 30% of potential EV buyers are reconsidering or have postponed their EV purchasing decisions.

“Canada’s EV story hasn’t stalled – rather it’s becoming more pragmatic,” said Jennifer Rogers, automotive and transportation leader at EY Canada. “Consumers still care about fuel costs and the environment, but they’re asking harder questions about affordability, charging reliability and the day-to-day experience. The opportunity now is to close the confidence gap with clearer pricing, more dependable charging and a purchase journey that meets Canadians where they are.”

For Canadians that prefer ICE vehicles, the primary barriers to EV consideration are upfront purchase cost (32%) and public charger quality / interoperability (28%). Consumers also cite difficulty locating charging stations (38%), expensive charging costs (32%) and long wait times (31%) among the top public charging concerns.

The top two EV purchasing motivators are the same as last year, with 53% citing high fuel prices (up from 45%) and 47% citing environmental concerns (up from 34%).

Canadians are fairly reserved in their appetite for automation. On a scale of 0 (no automation) to 5 (full automation), two-thirds are comfortable with up to level 2 (partial autonomy). Concerns about accident risk (62%), loss of vehicle control (54%), and technology failure (52%) remain prominent.