ICE preference among Canadian buyers rose to 58%, BEV preference fell to 7%.
Upfront EV cost and charger reliability biggest barriers to adoption.
Dealerships still lead purchases, but online research and digital buying interest increased.
Canadian consumers entered 2025 with less enthusiasm for EVs and renewed interest in conventional powertrains, according to EY’s latest Mobility Consumer Index for Canada. Based on responses from 1,001 Canadians, the survey found that about 46% intend to buy a vehicle within the next 24 months, down modestly from a year earlier.
Within that pool, internal combustion engine (ICE) vehicles regained ground. The survey found that 58% of potential buyers now prefer ICE models, up from 44% in 2024. Battery-electric vehicle preference fell to 7% from 15%, while hybrid demand also moved lower year over year, dropping to 17% from 26%. Even with that decline, hybrids remained the most preferred alternative to gasoline-powered vehicles.
The survey finds affordability and charging performance as the biggest reasons for EV momentum loss. Among Canadians choosing ICE over EVs, 32% cited upfront purchase cost as a top barrier. Another 28% pointed to charging quality and compatibility concerns. The survey also found persistent concern about winter performance, range loss, and repair costs.
Unequal charging experiences remain a key friction point. Public charging users noted locating a station, charging costs, and wait times as the main problems. At home, respondents focused on installation expenses, higher electricity bills, and the cost of panel upgrades. At the same time, they showed growing interest in practical home energy use cases, such as vehicle-to-home backup power and tools that automate charging to reduce costs.
Policy conditions likely added deflated demand. The survey summary notes that the pause of Canada’s federal iZEV rebate program in early 2025 helps explain the change of heart. The study also found that 30% of potential EV buyers in Canada were reconsidering or postponing an EV purchase due to recent geopolitical events.
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Retail preferences also continued to evolve. Dealerships and showrooms remained the leading purchase channel, preferred by 41% of respondents, but that was down sharply from 62% in 2024. Online channels rose to 27%, and another 32% said they would assess both digital and physical options. The survey found that test drives and in-person visits still carry significant weight, with many buyers unwilling to complete a purchase without both.
On vehicle technology, Canadians showed a clear preference for utility over novelty. Navigation, safety, and maintenance features ranked highest among connected services, while willingness to pay for add-on functions stayed limited. Acceptance of self-driving capability also remained restrained: 68% were comfortable with up to Level 2 automation, while only 18% were comfortable with Level 3 or higher.
Source: EY
