Why fewer Canadians are considering buying an electric vehicle

A new study suggests interest in purchasing an electric vehicle has declined over the last few years.

There seems to be less interest in going electric.

According to a new survey by AutoTrader, fewer Canadians are considering an electric vehicle for their next purchase. It’s a trend a car dealership in Halifax has also noticed.

“When electric cars became more readily available, there was a huge spike in it and it was shocking how much demand there was, so seeing it simmer off … it is shocking to see how much it’s dropped off over the past say year or so,” said Steele Mitsubishi sales manager Johnny Yeadon.

According to AutoTrader, in 2022 about 68 per cent of drivers were interested in getting an electric vehicle. That dropped to 56 per cent in 2023 and then to 46 per cent in 2024.

So far in 2025, about 42 per cent of drivers are considering electric.

Yeadon expects the drop in EV sales will likely continue.

“I do think it will be a little bit of a decline until more manufacturers have fully electric vehicles to the market that are in the affordable price ranges,” he said.

AutoTrader VP of Insights and Intelligence Baris Akyurek said there are three main reasons behind the decline.

“EVs tend to be more expensive than ICE (Internal Combustion Engine) vehicles. That’s number three,” said Akyurek. “Number two is the infrastructure. They don’t believe that the infrastructure is there whenever they want to charge their vehicles, and the first one is always the range anxiety.”

Another factor was concerns over long-term costs. However, Garage-EV co-owner Chad MacLean said overall maintenance costs are lower for EVs.

“They’re not maintenance free, they’re maintenance light,” said MacLean. “EVs themself are just like any other vehicle. So, brakes, suspension. Those are with every vehicle.”

Garage-EV opened in Dartmouth, N.S., in 2022 and specializes in maintenance and repairs for electric vehicles and hybrids.

“In the East Coast with the slower adoption to EVs, it’s been good, but that’s why we still service our regular vehicles,” said MacLean.

AutoTrader also pointed to fewer incentives as a reason for the decline in interest. For instance, the federal incentive program in Canada reached its cap in January. It had already been slated to end in March.

Akyurek said when Germany ended its rebates in 2023, there was a nearly 70 per cent drop in EV sales the following year.

“Obviously, there’s an impact of these incentives on purchase decisions,” he said.

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