Back in February, we explored the sudden halt of Canada’s iZEV rebate program and how dealerships could adapt to the shifting EV landscape. At the time, we knew that the loss of federal incentives would be a challenge, but now, a few months later, new data is showing just how deep the impact may go. Despite falling EV prices and growing government pressure to meet zero-emission targets, Canadian consumer interest in purchasing EVs has been sliding year over year. According to recent survey data, just 42% of Canadians in 2025 are considering an EV purchase. That’s down from 68% in 2022. A full 26-point drop in three years. So, what’s really driving this decline? And more importantly, what can dealerships do about it?
The Cost of Uncertainty in EV Interest?
Let’s unpack the key reasons:
Government Incentive Uncertainty As we discussed in our previous post, the abrupt end of the iZEV rebate program left a gap that many provinces have yet to fill. While Quebec and B.C. continue to offer localized rebates, much of the country is operating in a vacuum. The lack of consistent, national-level support makes EVs a tougher sell, especially in more price-sensitive markets.
Charging Infrastructure Concerns Despite continued investments, many Canadians, particularly in rural or suburban areas, face limited access to reliable charging stations. For customers used to the convenience of gas stations on every corner, range anxiety is real.
Long-Term Ownership Costs and Depreciation Even as sticker prices drop (AutoTrader reported a 7.8% year-over-year price decline at the end of 2024), many buyers remain wary of maintenance costs, battery longevity, and resale value. And with good reason. EVs are currently depreciating faster than their ICE counterparts. On average, EVs lose about 49% of their value after five years, compared to a slightly lower, more predictable rate for ICEs.
Cold-Climate Performance A recent CAA poll found that nearly two-thirds of Canadians are concerned about EV range loss in the winter. For buyers in northern regions, this isn’t just theoretical, it’s a dealbreaker.
Economic Pressure With high interest rates and general inflation, many consumers are rethinking large purchases altogether. And if a buyer is choosing between a reliable used ICE vehicle and a higher-priced EV with uncertain long-term costs, the decision often tilts away from electric.
Sales Are Slowing, Too
While EVs made up 10.8% of new vehicle registrations in 2023, the time it takes to sell them has nearly doubled from 22 days in early 2023 to about 55 days in 2025. And in some months, like February of this year, EV sales have outright declined, contributing to an overall 8.2% drop in new vehicle sales. These figures suggest we’re no longer looking at a temporary dip. We’re facing a meaningful shift in consumer behavior. This has real implications for your dealership strategy.
What Can Dealerships Do Now?
Even in a cooling EV market, there are smart ways to maintain momentum and support long-term goals.
Reframe the EV Value Proposition With fewer rebates on the table, the EV conversation needs to shift. Emphasize total cost of ownership, lower fueling costs, and high-tech features. EVs still offer tremendous benefits, but customers may need more reassurance than before.
Adjust Inventory Strategies Review what’s moving in your market. Stocking a mix of more affordable EVs, hybrids, and fuel-efficient ICE vehicles may help you capture hesitant buyers while keeping options open for those still interested in going electric.
Lean Into Financing Tools Use tools like Autovance to offer flexible, creative financing that makes EVs more accessible. Highlight lease options, trade-in support, or dealership-led incentives like free charging station installs or extended warranty packages.
Train Your Team on the New Narrative If your team is still leading with rebates, it’s time for a refresh. Train your sales staff to address common concerns like battery life, winter performance and resale value. Give them the tools to handle tougher conversations with confidence.
Don’t Count EVs Out… But Stay Flexible
Consumer confidence in EVs may be dipping, but the larger trend toward electrification is still in motion. Federal mandates, OEM roadmaps, and technological advancements will continue pushing the industry forward. That said, dealerships need to stay nimble. Listen to your local market. Adjust your approach.
And most of all, be ready to meet customers where they are today, not just where we hoped they’d be a few years ago.
