New report identifies challenges, solutions for MHDV electrification
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Commercial Electric Vehicles
Jul 22, 2025
Mehanaz Yakub

Electric Mobility Canada has identified 52 ecosystem gaps for MHDV electrification and is providing recommendations to government

An updated analysis by Electric Mobility Canada finds significant challenges remain for medium- and heavy-duty fleet electrification.

Electric Mobility Canada has identified 52 ecosystem gaps for MHDV electrification and is providing recommendations to government

Systemic barriers continue to stall the electrification of commercial fleets across Canada, finds a new Electric Mobility Canada report.

The third edition of the Zero-Emission MHDV Ecosystem Analysis finds that while light-duty EV adoption is accelerating, Canada’s medium- and heavy-duty vehicle (MHDV) market is lagging farther behind due to high upfront costs, infrastructure delays, workforce shortage and supply chain uncertainties.

“This document is intended as both a reference and a call to action — supporting policy development, industry alignment, and collaborative progress toward a zero-emission commercial vehicle future in Canada,” reads the report.

Vehicle availability and cost barriers

The analysis identifies a comprehensive set of gaps and recommendations across four pillars: planning, vehicle supply, infrastructure and operations.

For most fleet operators, limited vehicle availability and high upfront costs are some of the biggest roadblocks to electrification.

Despite improving total cost of ownership (TCO) for battery-electric vehicles (BEVs), upfront costs remain high — especially when factoring in battery degradation, grid connection fees and unclear resale values.

To deal with this the report suggests:

  • Expanding and streamlining incentives for vehicle and infrastructure purchases, with tailored programs for each vehicle class.
  • Making incentive timelines predictable, with clear start and end dates, to support long-term planning.
  • Creating open-access tools, including a national TCO comparison database and customizable financial templates for various industries.

In addition to financial support, fleets need clearer market signals around vehicle availability including:

  • Setting realistic, phased-in national sales targets for MHD ZEVs including Class 7 and 8 and school buses that reflect technology readiness. For provinces without targets, a 2030 goal should be established.
  • Continuing vehicle purchase incentives for Class 5–8, with a strong emphasis on streamlining the application process, reducing delays, and consulting stakeholders to improve clarity, predictability, and efficiency.
  • Supporting dealer-focused awareness campaigns that demonstrate where MHD ZEVs can deliver the best TCO for each vehicle class.

Accelerating infrastructure deployment

Charging infrastructure also continues to lag vehicle adoption, particularly for small- and mid-sized fleets, according to the report.

Complex application processes, long utility timelines for grid upgrades, and a shortage of skilled electrical workers have all contributed to the slowed down deployment.

To address these issues, EMC recommends:

  • Creating a dedicated funding stream for MHD charging infrastructure-across public, shared, and depot sites-tailored to the technical and financial realities of this segment.
  • Speeding up application reviews and funding decisions under programs such as the Zero Emission Vehicle Infrastructure Program and Zero Emission Transit Fund, to align with fleet deployment timelines.
  • Providing fleets with access to qualified service providers who can deliver load and fleet studies that meet utility requirements.

Improving the workforce

The shift to zero-emission fleets is not just about vehicles and chargers — it’s also a matter of people and the workforce. The report highlights critical knowledge and data gaps is limited the speed and scale of adoption.

To bridge the skills gap, EMC recommends launching subsidy programs for technician training. These would focus on EV maintenance, charger servicing, diagnostics, and safety protocols.

Investing in workforce development, says EMC, will improve reliability, reduce downtime, and enable safer operations across fleets.

Data access is another issue.

Many OEMs restrict access to detailed vehicle diagnostics, which hinders predictive maintenance, integration with charging software, and optimized fleet performance.

To unlock the benefits of data-driven fleet management, EMC is calling for OEMs to enable access to diagnostics data for vehicle owners, and collaborate on open data standards-such as COVESA-to support interoperability between vehicles, chargers and management platforms.

“Canadian fleets are facing significant hurdles in acquiring medium and heavy-duty ZEVs, placing them at a competitive disadvantage and creating uncertainty for utilities and infrastructure operators,” summarizes the report.

“To ensure Canada captures the economic and environmental benefits and secures a reliable supply of vehicles, we propose a national initiative to foster a predictable market.”

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