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EXECUTIVE SUMMARY
- What you need to know
- Market predictions
- Opportunities
- What consumers want & why
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THE MARKET
- Market context
- The financial outlook is relatively flat
- Costs of living still concern
- Graph 1: consumer price index, 2020-25
- Impacts of tariffs are imminent
- Market drivers
- Mandating a zero-emission future…
- …alongside a pause on federal incentivization
- Drastic drops in EV sales
- Concerns around infrastructure and electrical supply
- Ontario makes driving cheaper
- The Carbon Tax condundrum
- Trump rolls back EV mandates in California…
- …and the US flounders alongside global EV competitors
- Attitudes toward Tesla tumble
- Public transit faces funding challenges
- Comparing Canadian urban centres’ transit systems
- Bike lanes continue to be contentious
- Regulations around micromobility are fragmented
- Price is a problem for legacy automakers
- Who gets to regulate autonomous vehicles?
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CONSUMER INSIGHTS
- Consumer fast facts
- Household vehicle ownership
- Gas-powered cars’ prominence can’t be denied
- Canadians can’t live without their cars…yet
- Graph 2: household vehicle ownership, 2025
- Changes afoot since 2024
- Graph 3: household vehicle ownership, 2024 vs 2025
- Younger Canadians gravitate away from gas-powered
- Graph 4: household car ownership, by age, 2025
- …but younger men are most sold on an electric future
- Graph 5: lives in a household with an electric/hybrid car, by age and gender, 2025
- Multicultural Canadians look to a variety of transportation methods
- Graph 6: household vehicle ownership (select), by race, 2025
- Higher income households have no hesitation biking
- Graph 7: lives in a household with a bicycle, by household income, 2025
- Gas prices gouge gas-powered owners
- Graph 8: has been affected by increased in gas/diesel prices in the past two months, by type of car in household, 2025
- Hybrid and electric owners are open to other forms of transportation
- Graph 9: household vehicle ownership (select), by type of car owned, 2025
- Working from home removes a reliance on gas-powered vehicles
- Graph 10: household vehicle ownership (select), by workplace location, 2025
- Transportation used the past year
- Personal vehicles’ prominence is pronounced
- Graph 11: types of transportation used in the past 12 months, 2025
- Men are more open to micromobility options
- Graph 12: types of transportation used in past 12 months (select), by gender, 2025
- Age has everything to do with it
- Graph 13: types of transportation used in the past 12 months (select), by age, 2025
- Multicultural Canadians are motivated to use alternative transportation methods
- Graph 14: types of transportation used in past 12 months, by race, 2025
- Where you live determines how you travel from one place to another
- Graph 15: types of transportation used in past 12 months (select), by area lived, 2025
- Ontario and BC stand apart from the pack
- Graph 16: has used public transportation or ride sharing in the past 12 months, by region, 2025
- Hybrid and EV owners are willing to ditch the car for the day
- Graph 17: types of transportation used in past 12 months, by type of car owned, 2025
- Alternative transportation frequency
- Most consumers use alternative transportation methods at least occasionally
- Not all types of transportation are for everyday use
- Graph 18: types of transportation, by frequency of use, 2025
- Not all types of transportation are for everyday use
- Women aren’t feeling it
- Younger Canadians are on the move in multiple ways
- Graph 19: uses select alternative transportation methods at least a few times per week, by age, 2025
- Newcomers lean on public transportation
- Personal mobility situation
- Personal mobility situations vary greatly
- Older consumers are more content with their options
- Graph 20: attitudes toward transportation (% agree), by age, 2025
- Graph 21: attitudes toward personal mobility (% agree), by age, 2025
- Older consumers are more content with their options
- Students struggle with their mobility situation
- Atlantic Provinces’ satisfaction leaves something to be desired
- Graph 22: attitudes toward personal mobility (% agree), by region, 2025
- Suburban and rural areas demand personal vehicles
- Graph 23: attitudes toward personal mobility (% agree), by area lived, 2025
- Hybrid/EV owners have more options but are less contented
- Graph 24: attitudes toward transportation (% agree), by type of car owned, 2025
- A quarter of Canadians prefer to walk it out
- Top mobility factors when choosing transportation
- Consumers’ priorities are multiple
- Graph 25: factors most important when choosing how to get somewhere (any rank), 2025
- Older Canadians prioritize different things
- Graph 26: factors most important when choosing how to get somewhere (select) (any rank), by age, 2025
- Women’s concerns around safety are notable
- Graph 27: safety is a top priority when choosing how to get somewhere, by age and gender, 2025
- Alternative transportation occasions
- Alternative transportation is most attractive in the absence of a personal vehicle
- Graph 28: when one would consider using a form of alternative transportation, 2025
- Let’s go to the mall (via alternative transportation)!
- Graph 29: would consider using alternative transportation to go shopping, by age, 2025
- South Asian Canadians are open to commuting in different ways
- Higher income households have distinct preferences
- Graph 30: when one would consider using a form of alternative transportation (select), by household income, 2025
- East Coast Canadians aren’t convinced around alternative transportation
- Graph 31: would consider using alternative transportation if one didn’t have access to a personal vehicle, by region, 2025
- Urbanites need less urging to use alternative methods of transportation
- Graph 32: when one would consider using a form of alternative transportation (select), by area lived, 2025
- Hybrid employees are highly interested in switching it up
- Graph 33: would consider using alternative transportation to commute to/from work, hybrid vs in-person employees, 2025
- Opportunities: increasing excitement ditching the car
- Critiques of alternative transportation
- Alternative transportation has its critics
- Consumers still need convincing around e-bikes
- Graph 34: “I don’t see the point of riding an e-bike” (% agree), by age, 2025
- Public transportation is a headache for many
- Graph 35: Public transportation is not worth the hassle (% agree), by age, 2025
- Attitudes toward vehicle ownership
- Over two-thirds of car owners feel the personal connection
- Half of car owners are open to cutting down
- Personal vehicles remain a priority for rural Canadians
- Graph 36: “I would consider reducing the number of personal vehicles in my home” (% agree), by area lived, 2025
- Appealing to Canadians means paying attention to differences in location lived
- Remote employees see the value in reducing their vehicular footprint
- Graph 37: “I would consider reducing the number of personal vehicles in my home” (% agree), by workplace location, 2025
- People who don’t own feel like they can’t
- Car ownership can be a headache
- Students are less likely to see cars as the solution
- Graph 38: “vehicle ownership is a headache” (% agree), overall vs students, 2025
- Where you live impacts the frustrations of vehicle ownership
- Graph 39: vehicle ownership is a headache (% agree), by area lived, 2025
- Graph 40: vehicle ownership is a headache (% agree), by region, 2025
- In-person employees see vehicle ownership with rose-coloured glasses
- Graph 41: vehicle ownership is a headache (% agree), by workplace location, 2025
- Hybrid and EV owners see their cars are extensions of the self, but see the downsides of ownership
- Graph 42: attitudes toward vehicle ownership, by type of car owned, 2025
- Attitudes toward alternative transportation
- Alternative transportation feels good
- A fifth of consumers worry about the impact of their transportation choices
- EV and hybrid owners are (unsurprisingly) more environmentally conscious
- Graph 43: “I am concerned about the environmental impact of my transportation choices” (% agree), by type of car owned, 2025
- Not all regions feel as virtuous when using alternative transportation methods
- Graph 44: using alternative transportation makes me feel like I am making a positive impact on the environment (% agree), by region, 2025
- Urban areas see the savings around leaving the car at home
- Graph 45: using alternative transportation is an economical alternative to driving (% agree), by area lived, 2025
- Bike lanes are a go, but consumers want more regulations
- The divide between older and younger consumers’ attitude is obvious
- Graph 46: attitudes toward alternative transportation (% agree), by age, 2025
- Atlantic Provinces angle for more bike lanes
- Graph 47: building more bike lanes in urban areas makes sense (% agree), by region, 2025
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COMPETITIVE STRATEGIES
- Launch activity and innovation
- Turning a bike to an e-bike
- Vaughan tests out micromobility options
- Slate Auto foregrounds affordability and personalization
- Jolt expands EV charging network
- V2G TECHNOLOGY
- Waymo One and self-driving ride-hailing expansion
- Wombi simplifies e-bike ownership
- Uber expands Ride Offers ad solutions
- Uber’s future is Green
- Turo challenges the traditional rental car space
- Bike Share Toronto’s success is undeniable
- Tesla launches robotaxi pilot in Austin
- Bike Share Toronto’s valet service makes concerts a breeze
- Can-Am makes electric motorcycles cool
- Hopp offers options
- Uber reinvents the bus
- Marketing and advertising
- Tangerine encourages cycling by getting cars to take a nap
- Genesis makes an appearance on the silver screen
- BMW aligns luxury brands
- Octopus screens appeal to ride share users
- PRESTO cards come with perks
- Automakers continue to expand into micromobility offerings
- Garmin Varia™ RCT715, Bicycle Radar
- Uber turns failed driving tests into a win
- Uber gifts ride and movie promos
- Lincoln elevates the journey
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APPENDIX
- Consumer research methodology
- Consumer research questions
- Generations
- Abbreviations and terms
In 2025, alternative transportation in Canada is experiencing notable growth, though traditional car ownership remains dominant. Micromobility options such as e-bikes and scooter and bike share programs are gaining popularity, especially among younger Canadians, newcomers and urban dwellers. However, regulatory inconsistencies across municipalities and provinces create a patchwork of rules, which can hinder widespread adoption. Ridesharing and car membership programs are also on the rise, particularly appealing to those who seek cost-effective and flexible transportation solutions beyond public transit. Public sentiment strongly supports the expansion of bike lanes and improved urban infrastructure for non-driving alternatives. Despite these positive trends, significant barriers remain: affordability, convenience and infrastructure limitations continue to influence consumer decisions, and many revert to personal vehicles when alternatives do not meet their needs. Investments in high-speed rail, expanded public transit and affordable electric vehicle options are underway, aiming to make sustainable transportation more accessible and appealing.
The market dynamics of early 2025 reveal that the Canadian EV landscape has fundamentally shifted. It is no longer a story of “Tesla versus everyone else,” but has become a multi-polar battlefield. We have passed the point of early adopters and are now in the mass market phase. But, the landscape of alternative transportation in Canada is not evolving organically; it is being actively and powerfully shaped by a complex web of government policies. Federal and provincial actions, through ambitious mandates, volatile incentive programs and contentious taxation schemes, are the primary forces dictating the pace of change, creating both immense opportunities and significant market turbulence. Canada’s urban centres are the primary battlegrounds for the future of transportation. It is here that the tension between traditional, collective transit and new, individualized mobility options is most acute.
This report looks at the following areas:
- Dominance and persistence of traditional car ownership in Canada
- Growth and appeal of micromobility options like e-bikes and scooters
- Rise of ridesharing and car membership programs as flexible solutions
- Public support for infrastructure improvements for non-driving alternatives
- Impact of government policies and incentives on alternative transportation
- Barriers to adoption including affordability and infrastructure challenges
While gas-powered cars still dominate the Canadian transportation landscape, both hybrid/electric vehicles and alternative transportation methods continue to gain traction. But, fragmented regulations around micromobility options and EV/hybrid incentives alongside infrastructure gaps render widespread adoption a challenge.
Candace Baldassarre, Senior Analyst
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