Canadians aren’t necessarily souring on electric vehicles. But according to the latest study from Ernst & Young, they are viewing EVs with a more cautious eye.

EY Canada’s annual Mobility Consumer Index, which gauges consumer attitudes toward vehicle purchasing and technology preferences, showed Canadians are adopting a more practical approach for their next car purchase.

The survey of 1,001 consumers conducted in 2025 — when federal incentives for zero-emission vehicles were paused — found 46% of the respondents planning to buy a vehicle within the next two years, but their preferences showed “a noticeable shift” toward gas-powered vehicles.

In all, 30% of Canadian potential EV buyers said they were reconsidering their decision to purchase an EV (18%) or had postponed an EV purchase (12%), according to the study.

Meanwhile, preference for internal combustion engine vehicles rose to 58%, up from 44% in the previous year’s study, while battery electric vehicle preference dropped from 15% to 7% (from 15%). Hybrids, at 17%, remained the most preferred alternative powertrain, which EY said reinforces their role as a bridge for consumers who want efficiency without fully changing refueling behaviors.

But, EY Canada automotive and transportation leader Jennifer Rogers said, all of that that doesn’t mean Canadians are turning completely away from EVs.

“Canada’s EV story hasn’t stalled — rather it’s becoming more pragmatic,” she said. “Consumers still care about fuel costs and the environment, but they’re asking harder questions about affordability, charging reliability and the day-to-day experience.

“The opportunity now is to close the confidence gap with clearer pricing, more dependable charging and a purchase journey that meets Canadians where they are.”

The survey found the biggest factors working against considering EVs among Canadians were the upfront purchase cost (32%) and public charger quality/interoperability (28%).

Consumers also cited difficulty locating charging stations (38%), expensive charging costs (32%) and long wait times (31%) among the top public charging concerns. For home charging, concerns included high installation costs, electricity bills and electrical panel upgrades.

On the other hand, the top two reasons for EV purchasers were the same ones named in the 2024 survey — high fuel/gasoline prices (53%) and environmental concerns (47%) — and both rose considerably year-over-year, with fuel price factor up eight percentage points and the environment up 13.

The EY report also showed Canadians prefer a combination of online and offline channels for their vehicle purchases, with 85% saying they do research online, 39% saying they won’t buy a car without a test drive and 46% wanting to personally see or experience the car when buying.

But while the most popular response to where consumers would like to purchase a vehicle was at a dealership, just 41% of respondents selected that option, down from 62% the previous year, while online purchase preference climbed five percentage points to 27% and 32% said they want to evaluate both online and offline options, up 16 points.

The Canadian survey was part of a larger global study some 21,000 respondents from 32 countries in the Americas, Europe, Africa and Asia-Pacific regions.

The full Canadian study is available here.