With as many as six in 10 Canadians in the market to buy a new vehicle within the next five years, three-quarters are worried the ongoing uncertainty in the automotive industry will result in sharply higher prices, making new vehicles unaffordable, finds a new KPMG Canada survey.

While price and brand trust are the determining factors when Canadians buy a new automobile, the findings reveal that they have also become attuned to where vehicles are being made, with 72 per cent saying it’s important to them that their vehicle is assembled or built in Canada.

“Car buyers are looking for vehicles that meet their lifestyle, are affordable and have a positive economic impact on the country. It’s not surprising that Toyota and Honda, which each have a large manufacturing presence in Ontario, resonate most with Canadian consumers. At the same time, trust in the Detroit 3 is starting to erode as Canadians see a lack of commitment to keep jobs in Canada, driven by U.S. trade policies and pressures on company leadership to move operations to the U.S.,” said Dave Power, Partner and National Automotive Sector Leader, KPMG in Canada.

“As consumer concerns collide with ongoing trade tensions and tariffs threatening to upend decades of cross-border stability, Canada’s automotive sector needs to carefully consider its future and what changes might be warranted,” he said. “Canadians are calling for a new automotive strategy, which prioritizes domestic manufacturing, secures jobs, provides long-term resilience, and positions Canada as a leader in electric vehicles and battery production.”

Canadians want government support directed where it enhances domestic production and resilience. While all five original equipment manufacturers (OEM) operating in Ontario have historically benefited from government support, only 7 per cent believe subsidies should continue flowing to the Detroit 3, the KPMG survey finds.

Instead, 37 per cent want funding directed to Canada’s auto parts supply industry to protect Canadian manufacturing and supply chain stability. Fifty-eight per cent also said they support diversification into defence manufacturing.

With CUSMA set for review next year, nearly three-quarters (72 per cent) of Canadians worry vehicle prices will rise if Canada’s industry loses protection under the agreement.

Canadians strongly support a transition that moves away from U.S. reliance and prioritizes defence manufacturing, parts manufacturing and battery and critical minerals production.

“With all the turmoil in the auto sector, Canada has a real opportunity to invest at home and diversify into EV battery production to protect jobs, attract investment, and build long-term resilience,” added Mr. Power. “We have everything to lead the EV transition, including critical minerals, innovation, talent, and manufacturing capacity. What’s needed is a clear roadmap to accelerate Canada’s leadership, bearing in mind that building affordable EVs will be essential, particularly to compete with lower-cost models from foreign manufacturers, as will significant investment in a robust charging infrastructure.”