Small fleet operators face barriers in Canada’s electric vehicle transition

TORONTO, ON – As global electric vehicle sales soar to record highs — projected to hit 16.7 million units in 2024 — Canada’s small fleet operators remain at a crossroads. While electric vehicles now make up one in six new vehicle registrations, the shift to electric vans, trucks and buses is falling behind, with just two per cent of these vehicles sold in Canada by the end of 2023. For small fleet owners, unique financial and operational hurdles make the transition to electric particularly challenging.

The stakes are high. Transportation is Canada’s second-largest source of greenhouse gas emissions, trailing only oil and gas production. While emissions from passenger vehicles are expected to decline, emissions from commercial trucks and vans are on track to surpass those of passenger cars — despite these vehicles making up a much smaller share of vehicles on the road.

To understand these challenges, the Pembina Institute spoke with small fleet owners across the country — from local florists and bakers to electricians and delivery operators. Two key barriers emerged: limited awareness due to a lack of information about the benefits of electric vehicles and concerns over whether electric models can meet the rigorous demands of commercial use.

To help small fleet operators navigate this shift, the Pembina Institute has launched Moving to Electric, a comprehensive resource designed to provide practical tools, guidance and solutions for adopting electric vehicles.

The opportunities are clear. The transition to electric vehicles can revitalize Canada’s manufacturing sector, spur innovation and create well-paying jobs. For fleet owners, electric vehicles offer significant long-term savings through lower fuel and maintenance costs. And for Canadians, reducing air pollution from tailpipe emissions will improve public health and ease the burden on our healthcare system.

Quotes

“Small fleet owners and operators play a critical role in Canada’s economy. By helping them transition to electric vehicles, we’re not just reducing emissions — we’re cutting costs for businesses, creating healthier communities and positioning Canada as a leader in the global clean transportation economy.”

— Sarah McBain, Senior Analyst, Transportation, Pembina Institute

“Small businesses are ready to lead the way in Canada’s shift to electric vehicles — but they need the right tools and support to make it happen. By addressing their unique challenges, we can unlock savings, strengthen local economies and ensure they are part of the solutions to a cleaner, healthier future.”

— Adam Thorn, Program Director, Transportation, Pembina Institute

Quick facts

Electrifying 65% of Ontario’s school bus fleet by 2030 could create over 13,000 jobs and generate nearly $2 billion in economic output.
Electric medium- and heavy-duty vehicles can reduce operating and maintenance costs by up to 40% compared to diesel models, helping small business save thousands annually.
Replacing one local delivery truck with an electric one cuts emissions equivalent to five households switching to electric vehicles. Upgrading one large truck to electric has the same impact as removing nearly 50 passenger vehicles from the road.
Traffic-related air pollution contributes to thousands of hospitalizations and premature deaths in Canada each year, highlighting the urgent need for cleaner transportation solutions.
Over 150 zero-emission medium- and heavy-duty models are now available in Canada, offered by more than 30 manufacturers, with options spanning delivery vans, buses and heavy-duty trucks.
While medium- and heavy-duty vehicles make up just 4% of vehicles on Canada’s roads, they are responsible for nearly 30% of road transportation emissions.

Visit the Pembina Institute website to download a copy of Moving to Electric.

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