Canadians want affordable cars built at home, survey suggests

A new survey finds three-quarters of Canadians are worried about ongoing uncertainty in the automotive industry. CTV’s Travis Fortnum reports.

Canadians shopping for a new vehicle are feeling the pressure, according to a new national survey from KPMG Canada.

The survey suggests affordability concerns are top of mind as trade tensions, tariffs and uncertainty in the North American auto sector weigh on consumer confidence, with a review of the Canada–U.S.–Mexico Agreement (CUSMA) set for next year.

Affordability concerns dominate buying plans

According to the survey, 61 per cent of Canadians say they plan to buy a new vehicle within the next five years, but most say there are clear limits on what they are willing to spend.

• 62 per cent say they won’t spend more than $50,000, down from 75 per cent in a 2022 survey
• 39 per cent plan to spend between $30,000 and $50,000
• 23 per cent say they won’t spend more than $30,000

Price remains the top factor influencing purchase decisions, with 80 per cent ranking it as most important. Brand trust and reputation followed at 71 per cent.

Trade policy concerns appear to be adding to those worries. The survey found:

• 76 per cent are concerned about tariffs and trade tensions making new vehicles unaffordable
• 23 per cent say tariffs have already priced them out of the new vehicle market
• Another 38 per cent say a further 10 to 15 per cent price increase would push them out

“With U.S. tariffs disrupting the industry, Canadians in the market for a new vehicle are looking to the brands they trust at prices they can afford,” Dave Power, KPMG Canada’s national automotive sector leader, said in a news release.

Domestic manufacturing matters to many buyers

Beyond cost, the survey suggests Canadians are paying closer attention to where vehicles are made.

• 72 per cent say it is important their vehicle be built or assembled in Canada

That shift appears to be influencing how some automakers are viewed.

“Trust in the Detroit Three is starting to erode as Canadians see a lack of commitment to keep jobs in Canada,” Power said.

He adds that buyers are increasingly looking for vehicles that “have a positive economic impact on the country.”

Support shifting away from automakers

The survey also points to changing views on how governments should support the auto industry.

While major automakers operating in Ontario have historically benefited from public subsidies, respondents were more likely to favour support aimed at strengthening Canada’s supply chain.

• 37 per cent want funding prioritized for Canada’s auto parts industry
• 21 per cent want support directed to industries where Canada can be more competitive
• 15 per cent say automakers and suppliers should be supported equally
• Just seven per cent believe subsidies should prioritize Detroit-based automakers

“People want long-term strategy, not short-term patches,” Power said in the release.

EVs and batteries seen as a national opportunity

The survey suggests Canadians also see electric vehicles and battery production as a potential path forward for the auto sector.

• 55 per cent believe Canada could become a global leader in electric vehicles
• 52 per cent say governments should prioritize EV and battery production
• 55 per cent say their next vehicle purchase is likely to be environmentally friendly

At the same time, affordability and trust remain hurdles. Only 25 per cent of respondents say they would consider buying an EV made by a major technology company, down from 49 per cent in 2022.

Views on imports were mixed, with 47 per cent supporting the removal of tariffs on EVs from China, 23 per cent opposed and 30 per cent unsure.

Power said affordability will be key as lower-cost foreign EVs enter the market.

Trade uncertainty ahead

With CUSMA set for review next year, the survey suggests concern about Canada’s position in the North American auto sector remains high.

Nearly three-quarters of respondents worry vehicle prices will rise if Canada loses trade protections under the agreement. About half believe the industry cannot survive without safeguards or a new deal with the U.S., while a majority support imposing Canadian tariffs on automakers that move production south of the border.

KPMG surveyed 2,000 Canadians between Nov. 7 and 17 as part of its 2025 Consumer Automotive Survey.