Demand for electric vehicles in Canada seems to be powering down.

Ernst & Young’s latest EY Mobility Consumer Index report shows Canadian consumers’ intent to purchase an EV has sunk 2% from 2023, even as overall vehicle purchase intent rose 6%.

EY’s survey found 48% of Canadians plan to buy a car in 2025, up from 42% the previous year. But the percentage of those intenders considering an EV dropped from 52% to 50%.

Globally, purchase intent jumped 7% to 51%, with 57% saying they’re looking at EVs — up 2% in the past year.

“We’re in the middle of a massive mobility shift and the dip in Canada’s EV demand is a wake-up call,” EY Canada automotive and transportation leader Jennifer Rogers said. “It’s evident that investment has been prioritized in EV development. Now is the time to shift focus to overcome infrastructure hurdles and address consumer concerns head-on if Canada is to achieve its ambitious 2035 targets.”

The report said Canada’s decline in EV interest might be a result of a leveling off of the novelty of both EV technology itself and the wave of early adopters.

That’s not all there is to it. The survey respondent also expressed concerns in other areas, led by the installation costs of home charging units, cited by 57%, and electrical costs at 54%, while 42% said long wait times at public charging stations negatively impacted their ownership experience.

Other issues mentioned by consumers included limited driving range (33%) and the up-front purchase cost (30%). Fear over costly battery replacement and the lack of charging stations were both cited by 27%.

On the other hand, monetary incentives have become an increasingly important motivator driving consumers to consider buying an EV. Some 28% of survey respondents said that was a major reason for looking at an EV, up 5% year-over-year.

EY said that highlights the significance of government subsidies like the federal iZEV program, which provides up to $5,000 at point of sale, plus provincial programs offering rebates of up to $7,000, which offset the higher cost of EVs compared to combustion models.

The two top EV motivators are still fuel costs and climate-related concerns, which were one and two in 2023, with 45% of Canadians citing high fuel prices as their top reason for considering an EV — down from 49% in 2023. Environmental issues were down 6% but remained the No. 2 motivator. Appearing for the first time on the list of motivators was the increased variety of EV models, with 23% of respondents indicating it as a factor.

The report is available here.