The business was caught off guard when the Quebec Ministry of Transport and Sustainable Mobility (MTMD) abruptly suspended the Écocamionnage program on September 6 of last year. The incentive provided carriers with funding to purchase electrified heavy-duty vehicles.
However, fleet buyers and heavy truck dealers were caught off guard when the initiative was canceled for the 2024–2025 year due to a lack of budgetary availability.
Sarah Bensadoun, MTMD spokesman, told Transport Routier, “The ministry is aware that the suspension of the Écocamionnage program and the subsidies associated with it may have sparked many reactions within the industry, particularly among dealers and potential buyers of heavy vehicles.” “In addition, ministry representatives met with a number of industry partners to inform them of the situation after this suspension.”
A lack of budget
Many industry participants concur that the program’s design and implementation were flawed for a number of reasons.
First, some business representatives believe that the program’s funding of only $30 million was insufficient.
In Quebec, an electric vehicle costs around $600,000. The MTMD is offering us a grant of $150,000. That equates to 71 trucks with a $30 million budget. “It’s moving very fast,” said Yves Maurais, the Quebec Trucking Association’s (QTA) director of technical and operational files.
“Somewhere, changes will have to be made. Whether we increase the budget or reduce subsidies, I can’t say. But if they reduce subsidies, people will be less inclined to buy.”
EcoFord or Ecotrucking?
Although Écocamionnage promoted the purchase of electric heavy-duty vehicles, some customers exploited the scheme to purchase other kinds of cars, which was another unexpected issue that hindered the initiative. According to Bensadoun, Ford F-150 Lightning pickup trucks accounted for 43 percent of the vehicles accepted for the subsidy.
Since Écocamionnage only accepted light commercial vehicles with a gross vehicle weight rating of less than 4,500 kg and registered with a F or L plate, this kind of vehicle was technically qualified for the program. Thus, an application for an electric pickup used for construction, for instance, might be eligible for the program.
According to Maurais, “anyone who wanted to buy electric pickups took advantage of it.” Ford flooded the market and offered its cars nearly below cost to get rid of them since inventories were too high, so they jumped on it because the price was so low. People hurried since they could still access the full subsidy.
Industry insiders speculate that when the Ministry of Transport and the Ministry of the Environment accepted these applications, there might have been a misunderstanding.
The Electrification and Climate Change Fund, which is overseen by the Ministry of the Environment, provides the funding for Écocamionnage. Light vehicle subsidies are likewise handled by the latter, and it’s probable that Écocamionnage received the applications for light automobiles.
The burden on dealers
Truck dealers are at the top of the list of those most affected by the suspension of Écocamionnage.
Many are stuck maintaining and keeping electric trucks in inventory — often at high costs — because they can’t sell them without subsidies, as their prices remain too high
“We’re experiencing the same thing as the automobile industry, in the sense that we really need government support to make the transition,” says Bruce Gagnon, director of electrification at Réseau Dynamique. “Electric vehicles are much more expensive than diesel vehicles right now, which is why we need support. I don’t think there’s a carrier that can afford to pay full price for an electric vehicle.”
However, many believe that Écocamionnage does not work for heavy vehicle dealers and that they lack support from the government.
“From the beginning, Écocamionnage has been really poorly designed for truck dealers. We set up a program for heavy trucks that is identical to the one for automobiles. But it’s not the same thing at all,” said Éric Boulianne, general manager of Transdiff Peterbilt.
“No one thought to find out how a heavy truck dealership works. We are at the heart of the electric truck sales process, but we have zero government support.”
Dealers shared several ideas to improve the program. In addition to increasing the budget, they recommended reducing the timeframe for grants, helping to install charging infrastructure at dealerships, offering grants for demonstrator vehicle registrations, and passing the money on to those who purchase the truck.
“We need to resolve four or five major points so that we can make progress in this niche. Otherwise, what will happen is that dealers will abandon everything,” added Boulianne.
Another solution would be the installation of a charging infrastructure for future buyers.
“It’s like the chicken and the egg: if there are no charging stations, we won’t sell any trucks. And if we don’t sell enough trucks, there won’t be any more charging stations, so there won’t be a network,” added Charles Turgeon, sales director for Paré Centre du camion.
Early return
However, there is a good chance that Écocamionnage will return.
The program’s website reads that “an additional budget of $35 million has been allocated to Écocamionnage for the 2024-2025 fiscal year to meet the significant needs of the community. This additional sum will make it possible to expand the selection of projects eligible for financial assistance for projects already submitted.”
It is also indicated that “the applications received are currently being analyzed. Applicants will be informed of the decisions related to their request for financial assistance in the coming weeks. No new project submissions will be considered.”
As the program expires on March 31, 2025, steps are reportedly underway to renew it for 2025-2028.
Source: trucknews.com
