A new KPMG Canada survey suggests Canadians remain interested in buying new vehicles—but growing price anxiety, trade uncertainty, and concerns about domestic manufacturing may ultimately push more drivers to hold onto what they already own. For the automotive aftermarket, the findings reinforce expectations of longer vehicle lifecycles and sustained demand for service, parts, and repair.

According to the 2025 KPMG Consumer Automotive Survey, 61 per cent of Canadians say they plan to buy a new vehicle within the next five years. However, three-quarters are worried that ongoing trade tensions and industry disruption—particularly U.S. tariffs—will drive prices sharply higher and put new vehicles out of reach. Nearly a quarter of respondents say tariffs have already priced them out of the new-vehicle market, while another 38 per cent say a further 10–15 per cent increase would do the same.

Affordability pressures are clear. Sixty-two per cent of respondents say they will not spend more than $50,000 on a new vehicle, down from 75 per cent in KPMG’s 2022 survey. Almost one-quarter will only consider vehicles priced under $30,000—a segment that continues to shrink in the Canadian market.

“With U.S. tariffs disrupting the industry, Canadians in the market for a new vehicle are looking to the brands they trust at prices they can afford—and increasingly, where those vehicles are built,” said Dave Power, Partner and National Automotive Sector Leader at KPMG in Canada.

That last point matters. Seventy-two per cent of Canadians say it is important that their vehicle is assembled or built in Canada, reflecting growing awareness of supply-chain resilience and domestic job protection. Support for government investment is also shifting away from OEM assembly alone: 37 per cent of respondents want funding directed specifically toward Canada’s auto parts supply industry, compared with just seven per cent who believe subsidies should prioritize the Detroit Three.

For aftermarket professionals, this shift is notable. As vehicles stay on the road longer, shops and jobbers are likely to see increased complexity, particularly as the parc continues to age and diversify.

Trade uncertainty adds another layer. With CUSMA set for review next year, 72 per cent of Canadians worry vehicle prices will rise if Canada loses protection under the agreement. While any supply-chain disruption could raise costs in the short term, KPMG notes that stricter North American content rules could also create opportunities for Canadian parts manufacturers to expand production.

Electrification remains part of the picture, but affordability again dominates. While 55 per cent of Canadians believe Canada could become a global EV leader—and 52 per cent want governments to prioritize EV and battery production—over half plan to purchase hybrids or plug-in hybrids rather than full battery-electric vehicles. That mix suggests a prolonged transition period where internal combustion, hybrid, and EV technologies coexist in the service bay.

Bottom line for the aftermarket: while new-vehicle demand shows signs of strain, the conditions point toward sustained—and potentially growing—service and parts opportunities. Price-sensitive consumers, trade volatility, and longer ownership cycles continue to reinforce the aftermarket’s central role in keeping Canada’s vehicle fleet moving.

Notable Survey Findings

• 60 per cent say governments should provide financial support and incentives to keep automakers operating in Canada
• When asked to indicate how government support should be prioritized, 37 per cent said it should support jobs and production specifically in Canada’s auto parts supply industry to protect Canadian manufacturing and supply chain stability; 21 per cent want governments to focus on industries where Canada can be more competitive; 15 per cent say both the OEMs and auto parts suppliers should be supported equally; and, only 7 per cent believe supporting jobs and production among Canada’s Detroit 3 manufacturing operations should be prioritized
• 51 per cent believe Canada’s automotive industry cannot survive without trade protections or a new trade agreement with the U.S.
• 59 per cent believe that auto manufacturers in Canada should be subject to (higher) tariffs if they move to the U.S.
• 58 per cent think the auto industry should diversify into defence manufacturing to save jobs
• 55 per cent say Canada has the potential to become a global leader in EVs, reducing its reliance on the U.S. auto industry
• 52 per cent say Canada should prioritize becoming a leader in EVs and battery production
• Over half (55 per cent) plan to purchase an environmentally friendly car next: hybrid (33 per cent), plug-in hybrid (11 per cent), fully electric (11 per cent)
• 63 per cent say plug-in hybrids should be included in Canada’s EV mandate
• Only 25 per cent would consider buying an EV manufactured by a major technology company, down sharply from 49 per cent in a 2022 KPMG survey
• Nearly half (47 per cent) support removing tariffs on EVs from China, 23 per cent disagree and 30 per cent are unsure.