The number of Canadian interested in fully electric vehicles remained steady year-over-year but there are still many hurdles in the way, a new report highlighted.
The J.D. Power 2025 Canada Electric Vehicle Consideration Study research noted the complex challenges facing Canada’s EV market. While technological advancements and environmental imperatives push towards electrification, consumer hesitation remains a significant hurdle, it found.
J.D. Ney, director of J.D. Power’s Canadian automotive practice, hosted a webinar to discuss the results. He noted that the 2025 results were the first time the metric has not dramatically declined year-over-year. However, the Canadian market continues to lag significantly behind its American counterpart.
“About one in 10 new vehicle shoppers in Canada tell us they’re very likely to consider an EV,” Ney explained. “That number, for context, in the US is 24% — so more than double that.”
The national net consideration rate stands at 28%, compared to nearly 60% in the United States.
Regional variations paint a nuanced picture, with British Columbia and Quebec leading EV consideration rates. These provinces, known for their robust electric vehicle incentive programs, demonstrate the highest consumer interest. Notably, Quebec experienced an eight percentage point decline in consideration following the pause of its provincial incentive program to start the year.
The study also found a shuffle in brand considerations. Traditional automotive manufacturers have now claimed the top five positions in EV brand consideration, with Hyundai and Kia leading the pack, followed by Toyota, Ford and Chevrolet.
A particularly striking finding was Tesla’s dramatic drop in consumer consideration, falling to eighth place overall thanks to a 16-point decline in brand consideration.
Ney noted that the reasons for EV rejection remain consistent, with three primary barriers continuing to be range anxiety, purchase price and perceived lack of public charging infrastructure. Seven in 10 (71 per cent) of Canadian respondents cited concerns about driving distance on a single charge, while nearly 60% pointed to purchase price as a significant deterrent.
The study also explored Canadians’ confidence in meeting the federal government’s ambitious 2035 electric vehicle sales mandate.
“Seventy-five per cent of Canadians are either not at all confident or not very confident that, as a country, we can meet the 2035 sales targets,” Ney revealed.
The elimination of the federal EV rebate has further complicated the landscape. Forty-two per cent of potential EV shoppers indicated that the removal of the incentive negatively impacted their purchasing considerations.
Ney also observed how personal experience can shift EV perceptions. He explained that a significant portion of Canadians have never even sat in an electric vehicle, and this lack of direct experience correlates strongly with low consideration rates.
“Not surprisingly, if you’re in the group who has never experienced anything to do with an EV, your consideration rates are quite low,” Ney said, adding that consideration rates climb substantially as people progress from having no experience to actually driving or owning an EV.
This finding suggests that increasing test drive opportunities, dealership demonstrations and public exposure could be key strategies for improving EV adoption.
“There is an opportunity for governments, legislators, dealers and OEs to do whatever we can to bridge the education gap [and] give as many people as possible the opportunity to experience these vehicles,” Ney said. “I think that would certainly go a long way in shoring up EV consideration rates in the short term, and better set ourselves up as mandates start to take effect.”
