As we look back on 2025, one reality stands above all: British Columbia’s new-car sector faced a perfect storm of pressures that converged more sharply than at any point in recent memory. A cooling economy, rising household costs, unresolved tariff disputes, unprecedented affordability challenges, aggressive ZEV mandates, and the removal of EV rebates all collided at once. The cumulative effect reshaped consumer behaviour, disrupted dealership operations, and forced difficult decisions for families and businesses across the province.
Yet even amid this turbulence, there were bright points of resilience and optimism – including a record-breaking Vancouver International Auto Show that demonstrated, unmistakably, that British Columbians remain deeply engaged with the future of transportation.
BC’s Fall Economic Update confirmed what British Columbians had been feeling for months: inflation remained stubbornly high in the most essential parts of daily life – housing, groceries, fuel, and childcare. At the same time, vehicle prices continued to rise, driven by global cost pressures, advanced safety systems, and the accelerating shift to cleaner technologies.
An outdated policy made this worse. BC’s $55,000 so called “luxury” tax threshold, set nearly two decades ago, captures many family SUVs, pickups, and minivans. A tax originally designed for luxury products has become a tax on daily life – and it’s long overdue for modernization.
Dealers also faced rising operational costs. Ongoing US tariff uncertainty continued to inflate parts prices and disrupt supply chains. For many of BC’s 400-plus dealerships – the vast majority small or family-run – margins tightened just as customers became more cautious. This combination dampened consumer confidence precisely when households needed stability.
After years of leadership on zero-emission vehicle adoption, BC entered 2025 with strong momentum. But when the provincial government suspended the CleanBC Go Electric Vehicle Rebate Program, demand fell sharply. By June, ZEV market share had dropped to by half%, down from nearly 25% the year before. Without rebates, many consumers simply couldn’t bridge the affordability gap.
At the same time, major jurisdictions signaled the need for flexibility. Ottawa paused its national ZEV mandate, and Quebec adjusted its timelines and targets. And in December, BC made a significant change of its own – creating a new compliance pathway and adjusted targets. While details continue to evolve, the move acknowledges that the policy does not align with consumer reality.
Even with this shift, BC continues to maintain the most ambitious ZEV trajectory in Canada – but still without the rebates that once supported early adoption. Without better policy alignment, the province risks higher vehicle prices, reduced consumer choice, and disproportionate impacts on rural and remote regions where charging infrastructure remains inconsistent.
You cannot remove the rebate (the carrot) while keeping high expectations and penalties (the stick). Real-world conditions matter – and consumers have been signaling that the pace and cost of the transition must be sustainable.
Despite economic pressures, British Columbians demonstrated a strong appetite for innovation and new technology. The Vancouver International Auto Show returned with record-breaking attendance, packed EV and hybrid test drives, and remarkable public enthusiasm. It reaffirmed a crucial point: when vehicles are accessible and the economics make sense, interest in cleaner, modern technologies remain extremely strong.
The themes of 2025 point toward practical solutions that can be implemented in 2026. To support families, businesses, government revenues, and BC’s climate goals, the NCDA is urging action on several fronts:
• Update the outdated so called $55,000 luxury tax threshold.
• Reinstate stable, predictable EV rebates to restore consumer confidence.
• Put the brakes on the ZEV Mandates or at the very least, ensure a newly adjusted framework includes realism, flexibility, and cost impacts at the forefront – and align BC’s approach with national direction and Quebec’s more practical timelines.
These are not radical proposals. They are common-sense steps that balance environmental goals with economic realities.
2025 will be remembered as the year British Columbians signaled clearly that affordability matters. Consumers want cleaner transportation options, but they also expect fairness, choice, and policies grounded in the realities of everyday life.
If BC realigns its approach – including continuing to refine its updated ZEV mandate – our province can still lead in clean mobility without making vehicle ownership increasingly out of reach for the families and businesses who rely on it.
On behalf of the New Car Dealers Association of BC, I want to wish everyone the very best of the season and a happy, healthy New Year. May 2026 bring renewed optimism, stronger collaboration, and a continued commitment to supporting the families, businesses, and communities that keep our province moving.
Blair Qualey is President and CEO of the New Car Dealers Association of BC.
You can email him at [email protected]
