After a prolonged slowdown, Canadian interest in electric vehicles is showing signs of recovery, driven by renewed incentives and growing consumer research activity
According to new data from Rates.ca, searches for electric vehicle models on the auto insurance quoter’s website rose 40 per cent in March compared with the same month last year, following a 33 per cent year‑over‑year increase in February. Rates.ca said the trend suggests Canadians are once again actively considering EVs after interest dipped in 2025 when federal and provincial rebates expired.
The survey found that 30 per cent of Canadians have some level of interest in purchasing an EV. Within that group, 17 per cent said they would consider buying one within the next five years, while 13 per cent are open to the idea but not in the near term. Just over half of respondents, 51 per cent, said they are not interested in an EV, 11 per cent were unsure, and 8 per cent said vehicle ownership does not apply to them.
The renewed interest comes after the federal government introduced a $2.3‑billion Electric Vehicle Affordability Program earlier this year to help offset high purchase prices. At the same time, Chinese automakers are signalling interest in entering the Canadian market after tariff barriers were lowered, raising expectations of increased competition and potentially more affordable options in the years ahead.
Interest in EVs is not evenly distributed. Canadians more likely to consider an EV include younger adults aged 18 to 34, men, urban and suburban residents, and households earning more than $60,000 annually. Rural residents and lower‑income Canadians were far less likely to express interest, underscoring how cost and access to charging infrastructure continue to shape adoption.
Despite renewed curiosity, barriers remain significant. Among Canadians who are interested in or unsure about EVs, 89 per cent reported at least one concern. Cost topped the list, with 59 per cent citing the purchase price as their primary hesitation.
According to Erik Johnson, vice‑president and senior economist at BMO Capital Markets, affordability remains central to consumer decision‑making. He told Rates.ca that buyers are focused on whether monthly payments make sense before committing to an EV. When incentives were reduced or paused in 2025, Johnson said the already high sticker prices became a major obstacle, contributing to a sharp drop in EV sales. More than 90,000 expected EV purchases were lost over the year, according to his analysis.
Supply constraints have added to the challenge. Canada produced about 1.2 million vehicles in 2025, down 7.8 per cent from 2024 and roughly one‑third below 2019 levels, making it the only North American vehicle producer still operating below its pre‑pandemic baseline. Limited availability combined with elevated prices has made adoption more difficult for both consumers and automakers.
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