The calendar may have turned a page to 2026, but we remain in a time of uncertainty and rising costs when it comes to the auto industry. Amid this uncertainty, Canadians are still looking to purchase new vehicles, although there may have different criteria than before.
According to a recent survey released by advisory firm KPMG, 61 per cent of Canadians plan to buy a new car within the next five years. However, the survey echoes some of the same concerns I’ve been hearing consistently from consumers over the last several months, such as a fear of increased prices due to the ongoing trade tensions and tariffs impacting the industry – and as a result, consumers.
Affordability is a very significant issue across Canada and in BC – and KPMG’s survey notes that 76 per cent of people are worried these issues will continue to make new vehicles unaffordable. In addition to this, nearly a quarter of people fear these ongoing tariffs have already priced them out of the new vehicle market.
While consumers are worried, they also seem to have more specific criteria than they have before. In grocery stores, many Canadians continue to support products branded with a maple leaf wherever possible, and a similar trend seems to be making its way into the automotive sphere as well.
According to the survey, 72 per cent of people say it’s important that their vehicle is built or assembled in Canada. Canadian pride is at a high right now, with 59 per cent of people saying any Canadian auto manufacturers should be subject to higher tariffs if they choose to move into the U.S.
While the desire to buy Canadian is clear, the reality is more complex. Modern vehicle manufacturing relies on integrated North American supply chains, meaning that “built in Canada” often still depends on cross-border parts, materials, and logistics. That makes affordability, trade policy, and regulatory alignment just as important as consumer intent when it comes to supporting domestic production. Electric vehicles (EVs) are spotted on our BC roads each day, and more than half of Canadians, 55 per cent according to this survey, believe our nation can become a global leader in the EV field.
Survey results also reveal 55 per cent of people plan to purchase a clean energy vehicle with their next automobile purchase, adding that 63 per cent of respondents say plug-in hybrids should be included in Canada’s EV mandate.
The New Car Dealership Association of BC supports electrification in the auto sector. While interest in EV vehicles remains, competing factors led to a significant dip in EV sales in 2025. The issue of affordability is a key consideration, and the suspension of the CleanBC Go Electric rebate program and continuation of the new vehicle Luxury Tax threshold that kicks in at $55,000 contribute to this challenge.
ZEV mandates divorced from market realities risk doing more harm than good. While dealers support the transition to lower-emission vehicles, aggressive and arbitrary sales targets imposed at a time of rising affordability pressures, uneven charging infrastructure, and paused consumer rebates create a fundamental policy imbalance.
Compounding the problem are penalties of up to $20,000 per vehicle for manufacturers that fail to meet mandated targets – costs that inevitably flow through the system, reduce vehicle availability, limit consumer choice, and drive up prices for families already under financial strain.
Mandates without matching incentives and demand do not accelerate adoption – they undermine it.
The pride that survey respondents have in Canada’s auto sector cannot be overstated. With 60 per cent of those surveyed suggesting financial supports and incentives should be considered if it helps keep our present level of automotive production in Canada.
Even in uncertain times, Canada’s automotive sector continues to adapt, innovate, and respond to what consumers are telling us. Canadians want choice, affordability, and the opportunity to support domestic production while embracing new technologies at a pace that works for their lives. If policy, industry, and consumers remain aligned around those shared goals, Canada’s auto sector is well positioned to move forward – resilient, competitive, and grounded in real-world demand.
Blair Qualey is President and CEO of the New Car Dealers Association of BC. You can email him at [email protected].
