Volvo Car Canada's 2024 Mobility Trend Report indicates a significant shift in vehicle preferences among younger Canadians, with over half of Gen Z considering Plug-In Hybrid Electric Vehicles (PHEVs).

The report highlights that while most Canadian vehicle owners currently use gas or diesel engines, the younger generation is leaning towards electrified powertrains.

The trend towards PHEVs is driven by various factors. High gas prices have led 75% of Canadians to believe that PHEVs could reduce fuel costs.

Environmental concerns are also paramount, with 64% of respondents acknowledging the negative impact of traditional engines.

Furthermore, the versatility of PHEVs, which combine electric batteries with gas engines, appeals to 30% of the population.

Volvo Car Canada managing director Matt Girgis said: “One of the biggest barriers for Canadians when considering an electric vehicle is concern over range and battery life.

“Our plug-in hybrids offer the ideal solution, combining the benefits of both electric and gas-powered driving. It’s a perfect choice for the younger consumer who’s eager to transition to an electrified vehicle without compromising on confidence or convenience.”

Volvo Cars is responding to consumer demand by expanding its electric vehicle lineup with four new fully electric models. To tackle concerns about pricing and transparency, the company has also launched the EX30, its “most affordable” electric SUV.

The study also sheds light on generational differences in purchasing habits. While 44% of Boomers are inclined to negotiate vehicle prices, nearly half of Gen Z and Millennials prefer fixed pricing, which aids in financial planning for vehicle-related expenses.

“We’re constantly trying to meet Canadians where they’re at and provide product offerings that best suit their lifestyle. We know Gen Z and Millennials look for transparency with brands, and we’re happy we can offer a programme that helps build trust,” added Girgis.