Survey: 30% of Canadians interested in EVs, but cost remains a barrier in 2026

After a long slump, Canadian interest in electric vehicles is showing signs of life.

Searches for electric vehicle models on the Rates.ca insurance quoter have climbed, with EV interest rising by 40% in March compared to the same time last year.

Similarly, a new Leger survey commissioned by Rates.ca finds that nearly a third (30%) of Canadians have an interest in buying an EV at some point.

There are a few reasons why.  

After the expiration of provincial and federal EV rebates in 2025, Prime Minister Mark Carney has introduced a new $2.3‑billion Electric Vehicle Affordability Program (EVAP) to help with the high cost of vehicles.  

Meanwhile, Chinese automakers, once blocked by steep tariffs, are now eyeing Canada as a new market, adding fresh competition to the mix.

But it’s not all smooth driving. While excitement grows around competitive pricing and new options, Canadians remain concerned about charging infrastructure, data privacy, and more. 

17% are interested in purchasing an EV in the next 5 years

According to the survey conducted by Leger, 30% of surveyed Canadians show some level of interest in buying an EV.  

Within that group, 17% say they would consider a purchase within the next five years, while the other 13% are open to the idea but not in the near term.

The remaining 51% say they’re not interested, 11% are unsure, and for 8%, purchasing or owning a car doesn’t apply.  

The Canadians more likely to consider an EV are those with higher incomes or easier charging access:

• Younger adults (18–34)
• Men
• Urban and suburban residents
• Higher‑income households (earning over $60,000)

Meanwhile, rural and lower‑income Canadians are far less likely to consider an EV purchase — indicating that cost and infrastructure gaps still shape EV adoption. 

Signals of renewed interest — and what’s driving it

Meanwhile, Canadians are shopping again. Rates.ca auto insurance quoter data shows EV interest ticking higher: up 33% year‑over‑year in February and climbing another seven percentage points to 40% in March.

Nino Di Cara, founder and president of Electric Autonomy, a publication focused on EV and autonomous transportation, points to three forces behind the increasing interest:

1. Fuel‑price volatility
2. New federal rebates
3. Cheaper Chinese EVs on the way

Together, these pressures are pulling EV interest out of its 2025 slump. But as the rest of the report shows, sticker price, charging access, and long‑term costs still drive the final decision. 

High sticker price is a major barrier for EV adoption

Even with 30% of Canadians interested in purchasing an EV, 89% of Canadians who are either interested or unsure report at least one concern.  

Cost is the biggest: 59% cite the purchase price as their top concern.  

According to Erik Johnson, vice president and senior economist at BMO Capital Markets, buyers are laser‑focused on the financial bottom line. In his words, “the arithmetic of a monthly payment needs to check out” before consumers commit to an EV.

When rebates were reduced or paused in 2025, the already high sticker price of an electric vehicle becomes a much bigger obstacle for buyers. According to Johnson, EV sales in Canada dropped significantly — over 90,000 expected sales were lost for the year.

Adding to the challenge, Canada remains the only North American vehicle producer still below its pre‑pandemic baseline — producing 1.2 million vehicles in 2025, down 7.8% from 2024 and 33% below 2019.  

When vehicles are less available and prices remain high, both automakers and consumers face an uphill climb.

“It's the sticker price that matters most for whether or not someone's going to make that [purchase] choice,” says Johnson.

Read more: Most Ontario households have spent over $15k on insurance in the past four years 

Rebates and more are back on the table

In February 2026, Ottawa scrapped the national sales mandate and replaced it with a new incentive‑driven approach.  

The updated EV program includes rebates of:

• Up to $5,000 for battery‑electric and fuel‑cell vehicles
• Up to $2,500 for plug‑in hybrids
• Eligibility capped at $50,000, unless the vehicle is Canadian‑built
• Rebates will gradually decrease each year until 2030 — meaning the incentives are temporary and will sunset over time.

This will lift some of the price concerns highlighted in the Leger survey. But lowering the actual sticker price is another issue entirely.  

Related: Ask an Auto Expert: CarQuestions.ca’s Mark Whinton on the future of EVs 

Will a new supply of Chinese EVs finally fill Canada’s low‑cost EV gap?  

New imports of Chinese-built EVs are poised to fill Canada’s low‑cost gap, and early consumer sentiment suggests Canadians are ready for them. Among Canadians who are interested or unsure about buying an EV, 17% say they’re concerned about availability.

That worry is well‑founded. “There's this huge missing low-cost segment right now in the North American space,” Johnson says. Without genuinely affordable models, math simply doesn’t work for most buyers.

To expand supply, the federal government is rolling out a new quota‑and‑permit system allowing up to 49,000 Chinese-built EVs annually at a reduced 6.1% tariff, with a requirement that 50% of the imported cars will cost $35,000 or less.  

Per the survey, 56% of respondents who are either unsure or interested in purchasing an EV would consider a Chinese-built EV such as BYD or Chery.  

Their top motivators are:

• Affordability (31%)
• Openness to emerging brands (31%)
• Performance (18%)

Interest is higher among younger adults (18–34) and men, with both groups reporting that about two‑thirds would consider a Chinese EV.

If EVs start entering Canada at $35,000 or below, as per the quota, Johnson says, it “really is going to move the needle,” given that the market “struggles to have many units under the $50,000 threshold” today.

Learn more: How much does it cost to own a car in Canada? 

Filling the price gap left by legacy brands

Chinese automakers are poised to enter the market with models already proven in Europe and Australia, potential models include BYD’s Atto 3, Seal, Dolphin, and Seagull. BYD plans to open twenty dealerships in Canada within the year.

And they’re arriving at a moment when existing options — particularly Tesla’s Model 3, one of the most popular EVs in Canada — have become more expensive. Tariffs over the past two years pushed Model 3 prices near $80,000 CAD.

Related: When is the right time to upgrade your car? 

Hesitations remain — but they’re modest

Despite broad openness, 23% of potential EV buyers say they aren't familiar enough with these Chinese brands to consider a purchase.

Other concerns — repair costs, data privacy, or geopolitics — are each cited by 5-6% of prospective EV purchasers. Still, geopolitical tension shapes sentiment: a Leger survey released in February surveying Canadians on their views of Chinese EVs found that 63% expressed concern that stronger China–Canada auto ties could prompt retaliatory U.S. tariffs.

Read more: Toronto pays far more for auto insurance than other Ontario cities 

The real cost of owning an EV

Even as lower‑priced EVs arrive, Canadians remain wary of long‑term costs. Forty-five percent of unsure or interested respondents worry about the cost of repairs and maintenance, while 23% cite insurance as a concern.

In early 2025, battery‑electric vehicles averaged $7,026 per repair, compared to $5,345 for gas vehicles. Heavier platforms, complex sensors, and calibration‑dependent systems all push costs higher — trends Johnson says are affecting the entire market. 

Typically, the higher the vehicle costs — no matter what their engines run on — the higher the insurance premiums on them. But the fact is, EVs do tend to cost more than their gas-powered counterparts.

“Insurance costs are going up for everyone… and EVs are higher than conventional vehicles,” Johnson says. 

Not only that, EV-specific factors add to the premiums. Because EVs are heavier, they wear out tires much faster. Replacing those tires could soon cost even more, as ongoing conflicts in the Middle East continue to disrupt global shipping routes and impact supply chains. 

“The Strait of Hormuz is a key transit point for some rubber production,” says Johnson. 

Another cost factor consumers rarely see but insurers track closely: resale volatility. 

“Resale value has been more challenged for EVs in the past couple of years,” he says. 

Johnson explains that EVs are more frequently written off after accidents because repairing their batteries or specialized components is often costly or not practical. This limits what insurers can recover through resale or parts, increasing their risk. To offset these potential losses, insurers raise premiums for EVs. 

Taken together, these dynamics contribute to the insurance gap more Canadians are noticing. 

Canada may be emerging from its EV pause, but whether new incentives, cheaper models, and a stronger charging network can finally convert curiosity into adoption remains the central question for the transition ahead. 

Read next: Here are the changes coming to Ontario auto insurance in 2026

Frequently asked questions (FAQ)

1. How much does an electric vehicle cost in Canada?

   The average new electric vehicle (EV) in Canada costs between CAD $50,000 and $70,000, depending on model and range. Entry‑level EVs start around $40,000, while premium EVs exceed $80,000. Prices remain higher than gas vehicles but are gradually declining as more models enter the market.

2. What rebates are available for electric vehicles in Canada?

   As of March 2026, Canada offers a federal EV rebate through the Electric Vehicle Affordability Program (EVAP). It applies to EVs purchased or leased on or after February 16, 2026, with dealer submissions opening March 31, 2026. 

   EVAP provides up to $5,000 for battery‑electric vehicles and up to $2,500 for plug‑in hybrids, based on a final transaction price of $50,000 or less (not MSRP). Canadian‑made EVs have no price cap. The program runs until March 2031 or until funds are exhausted. Provincial EV rebates remain available and may be combined with EVAP.

3. Are electric vehicles cheaper than gas cars in Canada?

   Yes. Canadian studies consistently show that electric vehicles are cheaper to operate than gas vehicles. 2 Degrees Institute found that EVs have 66–77% lower fuel and maintenance costs, depending on province. 

   Actual annual savings vary based on electricity rates and driving distance, but fuel and maintenance costs for EVs are consistently lower than for gasoline vehicles.

4. Is charging infrastructure for electric vehicles a problem in Canada?

   Yes. Canada’s EV charging infrastructure is uneven and remains a barrier outside Quebec and British Columbia. Quebec hosts the largest and most reliable public charging network, followed by B.C., while most other provinces lag significantly in charger density and fast‑charging access. 

   Canada will need hundreds of thousands of additional public chargers to meet EV targets, confirming current infrastructure growth is insufficient nationwide.

5. Are EV repair costs higher than gas cars?

   Usually no for routine upkeep, but yes for major repairs. EVs generally cost less to maintain than gas cars because they have fewer moving parts and no oil changes, resulting in significantly lower routine service costs. 

   However, major EV repairs — especially batteries or high‑voltage components — can be more expensive if needed outside warranty. Most EV batteries are covered for up to ten years or 160,000 km, which limits risk for new owners.