From tariff fears to new government EV regulations, the auto industry is in constant flux. While industry insiders adapt to a shifting marketplace, Canadians are reassessing what they want (and can afford) in their next vehicle.
To better understand how these forces are influencing decision-making, we asked Globe Insiders, our panel of readers, about their recent vehicle purchases, their plans for the next two years, and the factors influencing their choices, from geopolitics to engine type, brand, and more.
Geopolitics in the driver’s seat
The state of the world doesn’t exist in a vacuum. Globe readers are attentive to fluctuations in the Canadian economy, and to the role that US-Canada relations and news play in their everyday lives. 73% of readers who purchased or leased a car in the past 12 months, or who plan to in the next 2 years, state that the two countries’ relationship has impacted their vehicle-purchasing decisions.
Hybrid curiosity grows while EV doubts remain
30% of Globe readers have purchased or leased a car in the last two years, with a majority (64%) opting for a gasoline engine, followed by hybrid (20%), and electric (10%). However, the landscape changes for those who are considering a future purchase. This group overwhelmingly favoured hybrids (63%), then gasoline (48%), plug-in hybrid (26%), and finally, electric (25%).
This growing interest in hybrid engines relative to gasoline may signal the early stages of a broader shift in consumer preferences. With gas prices rising sharply and remaining unpredictable amid global uncertainty, efficient engines are likely to become more important than ever, suggesting that this trend toward hybrid and even EV consideration may continue in the months ahead.
Electric ambitions are hampered by practical concerns
We asked readers planning to purchase a vehicle – but not an EV – to weigh in on their reasons for concern. 77% cited driving range worries, followed by limited charging availability (71%), performance in the cold (59%), price (56%), and long-term reliability (55%), underscoring the hurdles EVs must still clear to win over mainstream buyers.
Prime Minister Mark Carney’s recent changes to Canada’s electric vehicle strategy, which will focus on expanding EV charging networks and reissuing EV subsidies, will likely affect sales, but it’s still too soon to know by how much.
On another front, we asked our readers weighing an EV purchase in the next two years whether they would consider a Chinese-branded EV. While our study was conducted before the new strategic partnership between Canada and China was announced in mid-January, the results reveal a degree of openness among Globe readers, with 57% of future buyers stating they would consider one.
When the price is right
Potential buyers over the next two years, representing 26% of readers, are indicating that reputation and cost are important in this moment. They cited affordability as the top concern influencing their next vehicle purchase, followed closely by brand reputation, at 77% and 76%, respectively.
Those who purchased or leased a vehicle within the last two years held similar cost concerns. When the time came to make a purchase, vehicle pricing was the main deciding factor for 54% of these buyers, followed by local dealer inventory (45%), and expected maintenance costs (44%). These cost-conscious attitudes are also influencing the decision on whether to shop luxury or stick with mainstream brands.
Premium brands face cautious buyers
49% of readers are exclusively considering non-luxury brands, while 45% are still considering a luxury brand, amongst other options. Only 14% of readers limit their scope to luxury brands. However, in both categories, brand loyalty and reputation remain a powerful force shaping buyer behaviour.
The brands winning readers’ trust
Over the past two years, standard-vehicle brand sales or leases have far outperformed those of luxury brands, with 70% choosing a non-luxury vehicle. Overall, four brands led the way: Toyota (11%), Subaru (10%), and Hyundai and Honda (8% each).
Of the 30% who opted for luxury purchases, 18% chose Audi, 17% went with Lexus, followed by BMW and Volvo at 14% and 10%, respectively.
Interestingly, readers were evenly split when choosing whether to stay or switch their vehicle brand. The factors most critical to influencing their decision were brand reputation (73%), vehicle design and style (68%), a proven track record for reliability (60%), and value for money (57%).
Our survey suggests similar trends for those intending to purchase within the next two years. These readers are strongly considering Toyota (43%), Honda (30%), and Subaru (26%), while luxury-only consideration is being given to Lexus (20%), Audi (16%), BMW (16%), and Mercedes-Benz (12%).
Playing favourites: the era of the SUV
When examining vehicle type, there’s a clear winner across both recent purchasers and future buyers: the SUV.
67% of purchasers or lessees over the last two years opted for an SUV, with most (59%) choosing a mid-sized SUV. The numbers are similar for future buyers: 70% are looking at SUVs, with most considering a mid-sized (58%) or compact (46%) SUV.
Summary
Globe readers are approaching their next vehicle purchase with a mix of practicality and long-term planning. They are closely following geopolitical tensions, with an eye to how Canada’s relationship with the United States is affecting the auto industry. While many factors influence their purchasing decisions, affordability and brand reputation are most important, with readers showing some skepticism toward newer technologies whose reliability is still being tested.
