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High Gas Prices Expected to Drive Greater Interest in Clean‑Energy Vehicles, Says NCDA

By March 17, 2026No Comments3 min read

With gasoline prices climbing across British Columbia, the New Car Dealers Association of BC (NCDA) says sustained pressure at the pump is likely to accelerate consumer interest in clean-energy vehicles – particularly plug-in hybrid electric vehicles (PHEVs), which allow drivers to reduce fuel consumption while maintaining the flexibility of a conventional vehicle.

Rising fuel costs have historically been a strong factor influencing vehicle purchasing decisions, with consumers increasingly seeking vehicles that provide better efficiency and lower day-to-day operating costs.

“As long as gas prices remain elevated, we expect to see growing interest in clean-energy vehicles,” said Blair Qualey, President and CEO of the New Car Dealers Association of BC. “Plug-in hybrids in particular are attracting attention because they give drivers the ability to complete many daily trips using electricity while still having the range and convenience of a gasoline engine when they need it.”

Recent data from S&P Global found hybrid uptake has surpassed that of electric vehicles in BC, with hybrids accounting for 20.9 per cent of all new vehicle sales in 2025. At the same time, the sale of electric vehicles dropped to 18.3 per cent – down from 22.8 per cent in 2024.

Qualey noted that today’s vehicle market offers British Columbians more choice than ever as the industry transitions toward lower-emission transportation.

“The key is providing drivers with a range of technologies that meet different lifestyles and budgets,” he said. “But when fuel prices remain high, interest in vehicles that reduce reliance on gasoline will only continue to grow.”

At the same time, the NCDA says affordability must remain central to policy decisions affecting the automotive market.

The association continues to call on the provincial government to put the brakes on BC’s Zero Emission Vehicle (ZEV) mandate and allow federal requirements to guide the industry.

“Dealers support electrification and we sell EVs every day,” said Qualey. “But adoption follows affordability, infrastructure, and consumer confidence – not government aspiration. These legislated targets remain overly ambitious and disconnected from reality.”

For consumers, the debate over ZEV mandates directly affects affordability and choice at the dealership. Many British Columbians are already finding it harder to purchase a new vehicle. When governments impose rigid sales targets that do not reflect real consumer demand, the result can be higher costs, reduced inventory of traditional vehicles, and fewer options for buyers trying to find a vehicle that fits their needs and their budget.