Toronto, Ontario -- Canadians shopping for a new vehicle are paying closer attention to where vehicles are built and are increasingly worried about price pressures linked to trade tensions, according to a new survey from KPMG in Canada.
The national poll of 2,000 Canadians was conducted from Nov. 7 to Nov. 17, 2025. It found 61 percent plan to buy a new vehicle within the next five years. At the same time, 76 percent said ongoing trade tensions and tariffs could make new vehicles unaffordable.
Concerns about trade policy are also weighing on buyers. The survey found 72 percent worry vehicle prices will rise if Canada loses protections under the Canada–United States–Mexico Agreement during its scheduled review next year.
“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 in models they want, and increasingly, on where those vehicles are built,” said Dave Power, partner and national automotive sector leader at KPMG in Canada.
The survey found 72 percent of respondents said it is very or somewhat important that their next vehicle is assembled or built in Canada. The result points to growing interest in domestic manufacturing and jobs.
Affordability remains a key constraint. The survey found 62 percent of consumers said they would not spend more than US$50,000 on a new vehicle. That compares with 75 percent in KPMG’s 2022 survey. Nearly one-quarter of respondents, or 23 percent, said tariffs have already priced them out of the new-vehicle market.
Views on government support are also shifting. Only seven percent of respondents said funding should prioritize the Detroit Three automakers. More Canadians favoured directing support to the auto parts supply chain, at 37 percent. A larger share, 58 percent, supported diversifying into defence manufacturing.
KPMG said the findings suggest continued pressure on pricing and affordability. If those pressures persist, the firm said the focus will likely shift to inventory mix, clearer pricing and Canadian-built vehicles, particularly in the US$30,000 to US$50,000 range.
