Canada’s auto industry is being pulled in two directions at once: you are being urged to go electric and buy local, while prices, tariffs, and shifting production threaten to put the cars you want out of reach. As pressure mounts on factories, workers, and dealers, Canadians are increasingly clear that they want a coherent plan that protects jobs, keeps vehicles affordable, and aligns with climate goals. The call for a new national auto strategy is no longer a niche policy debate, it is a kitchen‑table issue.
What Canadians Say They Want From Their Next Car
If you are shopping for a vehicle right now, you are probably trying to square three things at once: price, practicality, and impact on the Canadian economy. A recent survey by KPMG in Canada, highlighted through Dec and Car, found that car buyers are looking for vehicles that fit their lifestyle, remain affordable, and contribute to a positive economic impact at home, rather than simply chasing the latest tech trend. That same research shows a strong appetite for a coordinated approach to the sector, with respondents signalling that a clear automotive strategy would help them feel more confident about big-ticket purchases in an uncertain market.
Another survey, shared through Canadian Auto Dealer, CNW, Group, KPMG, LLP, reinforces that you are far from alone if you want to “buy Canadian” as long as it does not blow up your budget. The polling suggests that many shoppers would prefer vehicles built in domestic plants if governments and industry invest in domestic capacity and jobs, but they are wary of policies that raise sticker prices in the name of industrial policy. In other words, you are being asked to support the home team, yet you still need a monthly payment that fits your household finances.
Affordability Crunch Meets “Buy Canadian” Pride
The tension between patriotism and price shows up clearly in how you and your neighbours talk about your next purchase. According to a survey cited by Dec and According, 61 per cent of Canadians say they plan to buy a new vehicle within the next five years, but most do not want to spend more than $30,000, even as average transaction prices creep higher. That same research indicates that Canadians want affordable cars built at home, not luxury imports that leave local workers behind, which is why the figure of 61 per cent has become a shorthand for the scale of pent‑up demand.
Another set of findings, shared through Dec, Canadians, Canada, KPMG, CNW, Group, shows that respondents strongly support a new automotive strategy that would prioritize vehicles assembled or built in Canada, provided that policymakers keep a close eye on affordability. The message to Ottawa and the provinces is blunt: if you are going to ask families to back a domestic industrial plan, you need to make sure that tariffs, incentives, and regulations do not simply make new vehicles unaffordable for the very people you are asking to support it.
Tariffs, Trade Wars, and the Stellantis Shock
Even if you are not following every twist in trade policy, you are feeling the ripple effects when you walk into a showroom. President Donald Trump’s trade war has already reshaped the North American auto map, with Carmaker Stellantis shifting thousands of jobs and investing billions in U.S.-side production, a move that punched a hole in Canada’s trade talk strategy and highlighted how quickly corporate decisions can cross borders. The same reporting notes that President Donald Trump’s trade war pushed companies to accept “substantial financial support” south of the border, raising the stakes for Canadian negotiators who are trying to keep assembly lines running at home.
Those pressures are not abstract for workers and communities that depend on plants like the Windsor Assembly Plant, which has become a symbol of how tariff uncertainty can threaten livelihoods. Local coverage of Dec, Canadians, Windsor Assembly Plant, framed the debate in stark terms, noting that Canadians support a new auto strategy in the face of tariff uncertainty and that the temperature outside, listed as 34°F, felt like a metaphor for the chill in cross‑border relations. When you hear about another round of tariffs or a new trade salvo, you are really hearing about the future of paycheques in places that have built minivans and SUVs for generations.
Ottawa’s Response and the Limits of Defensive Policy
Faced with automakers scaling back their manufacturing presence, Canada has started to move from polite lobbying to more forceful action. In a recent statement, Oct and Canada announced measures that were described as decisive action to protect the auto industry and workers, signalling that the federal government is prepared to use financial and regulatory tools to keep production in the country. The same communication made clear that Ottawa sees the automakers’ decisions as unacceptable, particularly when they involve directing new investment to other jurisdictions after years of public support at home.
A follow‑up explanation, again from Oct and Canada, spelled out that this action follows the automakers’ unacceptable decisions to scale back their manufacturing presence in Canada, directing new investment and products elsewhere, and that the government expects companies to show greater loyalty towards Canada and their workers. For you, that kind of language is a reminder that defensive policy can only go so far, it can slow the bleeding, but without a proactive strategy that aligns trade, industrial policy, and consumer incentives, you are still left wondering whether the next model year will be built in Ontario or Ohio.
EV Reality Check: Hybrids, ZEVs, and the Next Wave of Tech
While trade battles rage, you are also being nudged toward a very different kind of vehicle, one that plugs in rather than fills up. Industry data from Sep and While ZEV shows that Q2 2025 data confirms a significant turning point, hybrids have overtaken ZEVs in consumer preference, even as governments push hard for full battery electric adoption. That shift suggests that many Canadians see hybrids as a practical bridge technology, a way to cut fuel bills and emissions without fully committing to the charging infrastructure and range planning that pure electric models still require.
At the same time, Sep, Canada, Zero, reports that zero-emission vehicles account for approximately a growing share of new registrations, but that this divergence between hybrid and ZEV trends underscores the importance of policy that reflects how people actually buy cars. If you are weighing a Toyota RAV4 Hybrid against a fully electric Hyundai Ioniq 6, you are not just thinking about climate targets, you are thinking about winter range, apartment parking, and whether public chargers will be working when you need them. A credible auto strategy has to meet you where you are, not where spreadsheets wish you would be.
Dealers, Digital Shoppers, and the Push for a Coherent Plan
On the retail side, you are also seeing the ground shift under your feet as dealers lean into new tools and data to keep up with changing expectations. A recent industry analysis framed the Canadian market as one where platforms promise to help Close Cars, Faster, Convert, More Leads, One Platform Built for Dealerships, reflecting how dealerships are trying to respond to a landscape where online credit approvals, transparent pricing, and digital trade‑in appraisals are now table stakes. The Canadian automotive landscape is evolving quickly, with more focus on digital retailing, flexible financing, and even early experiments in autonomous vehicle testing and use, all of which shape how you experience the buying process.
Public debate has followed suit, with voices like Matt Galloway on The Current asking whether Canada should give up on the auto sector at all, a question that surfaced in a conversation featuring Oct, Matt Galloway, Well, Donald, Trump US President, Trump, and other guests who wrestled with what a realistic future for the industry looks like. At the same time, local and national surveys, including those shared through Dec, Car and Dec, Canadians, Canada, KPMG, CNW, Group, point to a broad consensus that Canadians call for a new automotive strategy to build Canada strong, one that keeps vehicles affordable, supports workers, and ensures that when you finally sign for that new crossover or pickup, you feel like you are investing in your own country’s future as much as your own mobility.
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