Price sensitivity, economic uncertainty and ownership costs reshape Canada’s electric vehicle outlook
Canada’s transition to electric vehicles is entering a more financially cautious phase as consumers increasingly prioritise affordability and economic uncertainty in their purchase decisions, according to new research from EY Canada.
The firm’s latest Mobility Consumer Index suggests that while environmental concerns and fuel savings continue to influence attitudes, cost considerations are emerging as the dominant factor shaping vehicle preferences.
“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.
The report highlights a growing number of consumers delaying or reconsidering EV purchases amid broader economic and geopolitical uncertainty. Around 30% of respondents said they had postponed plans to buy an electric vehicle, signalling that financial caution is becoming a key feature of the market landscape.
This shift is reflected in rising interest in internal combustion engine (ICE) vehicles, with preference climbing to 58%, up from 44% previously. At the same time, interest in battery electric vehicles has declined to 7% from 15%, while hybrid models are gaining traction as a more financially manageable alternative.
For many prospective buyers, upfront costs remain the biggest deterrent. Among respondents favouring gasoline vehicles, 32% cited the higher purchase price of EVs as the primary reason for their choice.
Beyond the initial sticker price, consumers are also taking a closer look at the full cost of ownership. Concerns around public charging infrastructure — including reliability, interoperability and pricing — are shaping perceptions of EV affordability.
Survey participants identified difficulty locating charging stations (38%), high charging fees (32%) and long wait times (31%) as significant pain points. These challenges are reinforcing financial uncertainty by making it harder for drivers to estimate operating expenses over the life of the vehicle.
Home charging considerations are also influencing purchasing decisions. Installation costs, potential electrical panel upgrades and higher household electricity bills are prompting buyers to take a more measured approach to electrification.
Despite mounting financial concerns, rising fuel prices continue to be a strong motivator for EV adoption. More than half of respondents (53%) cited fuel costs as a key driver, while 47% pointed to environmental considerations — both increases from the previous year.
This suggests that while cost pressures are slowing momentum in the near term, underlying financial incentives linked to lower running costs remain supportive of the long-term EV transition.
Canadians are also taking a more deliberate approach to how they purchase vehicles, blending online research with in-person dealership visits. Roughly 37% of EV buyers and 41% of ICE buyers said they would not complete a purchase without a test drive, underscoring the importance of confidence in a major financial commitment.
At the same time, interest in completing purchases online has risen to 27%, with nearly one-third of respondents preferring a hybrid retail experience that combines digital convenience with physical reassurance.
Overall, the findings point to a maturing EV market in Canada, where financial realities — from upfront pricing to ongoing ownership costs — are shaping consumer behaviour as much as environmental ambitions.
