EY: Canada's EV transition turns pragmatic as consumers weigh cost, charging experience and confidence

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EY: Canada's EV transition turns pragmatic as consumers weigh cost, charging experience and confidence

Canada NewsWire

  • 30% of potential EV buyers in Canada are reconsidering or have postponed their EV purchase decisions
  • Top reasons Canadians choose ICE over EVs include upfront EV purchase cost (32%) and public charger quality and interoperability (28%)
  • Charging friction persists, including difficulty locating chargers (38%), high charging costs (32%) and long wait times (31%)

TORONTO | TRADITIONAL TERRITORY OF THE MISSISSAUGAS OF THE CREDIT, THE ANISHNABEG, THE CHIPPEWA, THE HAUDENOSAUNEE AND THE WENDAT PEOPLES, March 19, 2026 /CNW/ - EY Canada's annual Mobility Consumer Index, which gauges consumer attitudes towards vehicle purchasing and technology preferences, reveals that Canadians are adopting a more practical approach for their next car purchase. Although nearly half of respondents indicate plans to buy a vehicle within the next two years, there is a noticeable shift in preference back towards internal combustion engine vehicles (ICE).

"Canada's EV story hasn't stalled — rather it's becoming more pragmatic. 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," says Jennifer Rogers, Automotive and Transportation Leader at EY Canada.

Shifting gears: a new road ahead for mobility

This year's survey data shows that 30% of potential EV buyers in Canada report reconsidering or postponing EV purchase decisions in light of recent geopolitical events.

Preference towards ICE vehicles rose to 58% (up from 44%), while battery electric vehicle (BEV) preference declined to 7% (from 15%). Hybrids remain the most preferred alternative powertrain at 17%, reinforcing their role as a bridge for consumers who want efficiency gains without fully changing refuelling behaviours.

Affordability and charging: the roadblocks

For Canadians leaning toward ICE vehicles, the primary inhibitors 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. For home charging, high installation costs, electricity bills, and electrical panel upgrades emerged as added considerations.

Sustainability and savings: the motivators

The top two EV motivators remain the same as the previous year with 53% of respondents citing high fuel / gasoline prices as the top consideration, an increase from 45% the year before.  Environmental concerns hold onto the second spot but rose from 34% in 2024 to 47% in 2025, suggesting sustainability remains a key purchase incentive.

Hybrid car shopping continues: click meets brick

The report further highlights a retail journey that is increasingly hybrid. Canadians continue to rely heavily on online platforms for early-stage research, while the dealership experience remains important for decision-making — 37% of EV purchasers and 41% of ICE vehicle buyers say they wouldn't buy without a test drive. At the same time, online purchase preference grows to 27% (up from 22%), and 32% say they want to evaluate both online and offline options.

Function first, full autonomy later

On connected and autonomous experiences, Canadian consumers show stronger appetite for functional, day-to-day benefits (navigation, safety / security, and service / maintenance) than for higher levels of automation. On a scale where 0 is no automation and 5 is full automation, a majority (68%) are comfortable with up to Level 2 (partial autonomy), while concerns about accident risk (62%), loss of vehicle control (54%) and technology failure (52%) remain prominent.

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SOURCE EY (Ernst & Young)