Reviewing a year of highs, lows and the growing affordability crisis
As we prepare to close out 2025, it’s important to begin by marking a milestone: the 20th anniversary of Canadian auto dealer.
For two decades, this publication has documented the many ups and downs of Canada’s auto sector — from the fallout of the 2008 financial crisis and pandemic-era supply shortages to the rise of electric vehicles, shifting consumer expectations, and the rapid integration of safety and clean-technology innovations.
Canadian auto dealer has been, and continues to be, a trusted voice for dealers, consumers, and policymakers alike.
That history of resilience feels especially relevant as we reflect on 2025, a year that brought both promise and pressure.
The year began with stronger supply, expanded consumer choice, and continued investments by automakers in cleaner technologies. These were encouraging signals after years of supply chain turmoil.
But as the months unfolded, an escalating tariff dispute with the United States, a weakening economy, and mounting affordability concerns for both consumers and dealers created significant headwinds that continue to weigh on the sector.
The affordability crisis in Canada’s auto sector is the result of several overlapping forces. The average price of a new vehicle now sits at around $66,000 — more than 30 per cent higher than just five years ago and driven largely by the growing costs of innovation.
At the end of the day, this isn’t just about cars, trucks, or SUVs — it’s about affordability, fairness, and protecting jobs. If the government keeps layering on costs, everyone loses: families, small businesses, and ultimately, provincial and federal treasuries.
Automakers are investing billions in advanced safety systems, clean technologies, and digital connectivity. These improvements make vehicles safer, more efficient, and more sustainable, but they also arrive at a time when families are already stretched thin by higher costs for housing, food, insurance, and fuel.
Compounding the challenge are tariffs. Ongoing disputes have added another layer of cost pressure, driving up the price of vehicles and replacement parts. Tariffs on steel, aluminum, electronics, and EV batteries ripple through the deeply integrated North American supply chain.
In British Columbia, the provincial government is grappling with a substantial deficit and mounting debt, inevitably creating pressure to find new sources of revenue.
Yet the reality is that families and businesses across B.C. — and indeed across Canada, are already at a breaking point. Consumers can’t absorb higher costs, and the auto sector cannot shoulder new layers of taxation or regulation. If governments move in that direction, the outcome will not be more revenue, but less, as sales slow and investment retreats.
This is not a challenge unique to the auto sector. Across construction, hospitality, agriculture, and retail, businesses are grappling with their own version of rising costs and affordability pressures.
The pattern is consistent: when costs pile up, families delay purchases, businesses scale back operations, and governments ultimately collect less, not more. The cycle is unsustainable.
The NCDA is urging the B.C. government to take action by addressing the outdated $55,000 Luxury Tax threshold so that everyday vehicles aren’t treated like high-end models; ensure rural households retain fair access to a full range of vehicles by putting the brakes on ZEV mandates; reinstate stable, predictable EV rebates to support consumer adoption; and above all, resist adding new or higher taxes that would further burden families and small businesses.
At the end of the day, this isn’t just about cars, trucks, or SUVs — it’s about affordability, fairness, and protecting jobs. If the government keeps layering on costs, everyone loses: families, small businesses, and ultimately, provincial and federal treasuries.
Canada’s auto sector has consistently demonstrated its ability to adapt, innovate, and help drive the transition to cleaner, safer, and more efficient vehicles. But as we end 2025 and look ahead to a New Year, that transition must be balanced with the everyday reality of affordability for Canadians.
