British Columbia enters 2026 at a crossroads for the entire vehicle market. After several years of rising costs, economic headwinds, shifting mandates, and policy uncertainty, one message now dominates the conversations happening every day inside dealerships across the province: affordability is the defining barrier for British Columbians – whether they are considering an electric vehicle, a hybrid, or a traditional gas-powered car.
The cost of all vehicles has risen sharply in recent years, driven by global supply-chain volatility, tariff pressures, advanced safety technology, and higher manufacturing inputs. At the same time, families are absorbing, elevated living expenses, and an inflationary squeeze on essentials like housing, groceries, and childcare. The result is a vehicle market where many households, who once felt on the verge of a new purchase, now find themselves stepping back.
The BC’s Government’s CleanBC Report released in late 2025, confirmed what dealers have been hearing for months: affordability is the primary barrier to achieving BCs transportation and climate goals. Mandates alone cannot move a market when household budgets are pushed to the breaking point. And the suspension of the CleanBC Go Electric rebate program illustrated this clearly. When rebates disappeared, demand for EVs fell sharply almost overnight. EV interest did not decline – EV affordability did.
But the broader affordability crisis is just as significant. BCs outdated $55,000 “luxury” tax threshold, set nearly two decades ago, now captures many family SUVs, pickups, and minivans that are anything but luxury purchases – it’s essentially another tax on vehicles.
The threshold places an added burden on middle-income families, and makes the transition to cleaner transportation, whether that be an electric vehicle, hybrid, or an efficient gas-powered model.
EVs remain central to the province’s climate strategy, but consumers must be able to afford them. Gas-powered and hybrid vehicles will continue to play a meaningful role in a balanced, sustainable transition. And provincial policy must support a functioning market across all vehicle types because affordability challenges in one part of the market ultimately affect the whole.
The NCDA maintains that the ZEV mandate system should be eliminated entirely and replaced with a market-based, consumer-focused approach supported by predictable incentives and charging investments. That said, we are pleased that the province has signaled a willingness to adapt, with legislative updates planned for the spring and a review of ZEV targets pending. We hope to see federal and provincial policy align, to bring clarity, reduce costs, and avoid duplication that ultimately lands on the consumer.
If 2025 was the year British Columbians made it clear that affordability matters, then 2026 must be the year we rebuild a realistic, affordable path to vehicle ownership – EV and non-EV alike – so that every family has a place in BC’s clean transportation future.
As we enter the new year, excitement is already building for our signature event. The Vancouver International Auto Show returns March 25–29, following record-breaking attendance in 2025 that underscored extraordinary public enthusiasm for EVs, hybrids, cleaner technologies, and innovative mobility solutions. In just eleven weeks, auto enthusiasts from across the province will once again converge on the Vancouver Convention Centre West – and we can’t wait to welcome everyone back.
Blair Qualey is President and CEO of the New Car Dealers Association of BC.
You can email him at [email protected]
