Toronto, Ontario -- Electric vehicle demand may be facing turbulence following the end of government rebate programs on both sides of the border, but new data from J.D. Power suggests consumer enthusiasm for battery-powered cars remains strong.
According to the firm’s latest E-Vision Intelligence Report, 62 percent of returning EV lessees in 2025 replaced their vehicles with another electric model — and the trend is set to continue. Roughly 243,000 franchise EV leases are expected to expire in 2026, more than triple the number of returns seen this year. Among current EV owners, a remarkable 94 percent say they “definitely will” or “probably will” consider another EV for their next purchase or lease.
The findings come amid a sharp drop in U.S. EV sales following the October 2025 repeal of the federal US$7,500 EV tax credit. Sales plunged 53 percent that month, dropping EVs to just six percent of all new-vehicle sales — less than half September’s 12.9 percent share. J.D. Power notes, however, that the decline may represent a short-term correction after months of accelerated sales driven by shoppers rushing to use remaining credits.
Even as sales slowed, consumer intent climbed. In October, 24.2 percent of active new-vehicle shoppers said they were “very likely” to consider an EV within the next year — the highest rate since January 2025. When combined with those “somewhat likely” to consider one, nearly 60 percent of shoppers said an EV could be in their future.
Price remains a critical consideration, and J.D. Power’s research suggests most owners still see financial benefits. Lower cost of ownership is the top reason drivers go electric, with 86 percent of EV owners reporting that their vehicles deliver on that expectation. Sixty percent say their EVs are much less expensive to own than gasoline-powered cars, and another 26 percent say they’re slightly less expensive.
The Canadian EV market faces similar challenges as consumers wait for clarity on federal support. Canada’s November 4 budget, tabled by Finance Minister François-Philippe Champagne, offered no new funding for the Incentives for Zero-Emission Vehicles program. The budget also confirmed the Medium- and Heavy-Duty Zero-Emission Vehicles program will end this fiscal year, leaving the future of consumer rebates uncertain.
That uncertainty is already being felt. Statistics Canada data shows zero-emission vehicle sales dropped roughly 30 percent year-over-year through August.
Still, J.D. Power’s latest findings suggest that in the United States, consumer confidence in EVs remains strong despite shifting incentives. North of the border, the picture is less certain. With no new federal rebates in sight, Canada’s EV market may depend on provincial programs and automaker incentives to maintain momentum.
