The Quebec Ministry of Transport and Sustainable Mobility (MTMD) threw the industry into uncertainty when it suspended the Écocamionnage program on September 6, 2024. The initiative, designed to offer financial incentives for electric heavy-duty vehicles, was abruptly halted due to a lack of available funds for the 2024-2025 fiscal year.
Budget Shortcomings Spark Industry Concerns
Industry professionals have voiced concerns over the program’s insufficient budget. With just $30 million allocated for the program, the funds quickly ran out, leaving many fleets and dealers stranded. Yves Maurais, director at the Quebec Trucking Association (QTA), pointed out the mismatch between the subsidy and the cost of electric trucks. "An electric truck in Quebec costs nearly $600,000, and we can get a $150,000 grant. With a budget of $30 million, that’s 71 trucks. It’s going very quickly,” he explained.
Maurais believes the program needs either a larger budget or adjusted subsidies, as the current model isn't sustainable for many buyers.
Unexpected Surge in Electric Pickup Applications
A surprising development within the program was the influx of applications for electric light-duty vehicles like the Ford F-150 Lightning. These vehicles were eligible under the program, as long as they met commercial-use requirements. This led to 43% of the approved vehicles being pickups rather than heavy-duty trucks, as intended. Maurais suggested that buyers exploited the cheaper pickups to take advantage of the available subsidies.
It appears there was miscommunication between the Ministry of Transport and the Ministry of the Environment, which oversees light vehicle electrification. This led to the approval of vehicles that were not aligned with the program's original goals.
Dealers Struggling Without Support
Heavy truck dealers are bearing the brunt of the suspension. With electric trucks being expensive, many dealerships are holding on to unsold inventory, unable to move vehicles without the subsidies. Bruce Gagnon, director at Réseau Dynamique, emphasized that electric vehicles are still out of reach without government assistance. “I don’t think there’s a carrier that can afford to pay full price for an electric vehicle,” he said.
Dealers also criticized the structure of the Écocamionnage program, arguing that it didn’t consider the realities of the heavy truck sales process. “No one thought to find out how a heavy truck dealership works,” said Éric Boulianne, general manager of Transdiff Peterbilt.
A Potential Path Forward
Despite the current setbacks, there is hope that the program will be revamped. The Écocamionnage website notes that an additional $35 million will be allocated for the 2024-2025 fiscal year to address the sector’s needs. While no new applications are being considered, decisions on submitted projects are expected soon.
With the program set to expire on March 31, 2025, the government is reportedly working on extending and improving it from 2025 to 2028. Industry stakeholders are hopeful that these changes will better support the transition to electric heavy-duty vehicles in Quebec.
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