Ending the Plug-in Motorcycle Grant (PiMG) could wipe £50m from the UK’s electric motorcycle market and “significantly stall” uptake, according to analysis from the Motorcycle Industry Association (MCIA).
The analysis, undertaken by WPI Economics for the MCIA, suggests that removing the grant could result in around 6,500 fewer zero emission motorcycles being sold by 2030. This is equivalent to losing two and a half years of current sales in the sector.
In response to the findings, an MCIA-led coalition of manufacturers, retailers, logistics operators, road safety groups and clean transport advocates has written to ministers warning that the scheme’s expiry on 5 April would create a “clear and avoidable policy cliff edge.”
The warning comes amid clear evidence that the market is highly responsive to Government incentives as registrations fell by 38.6% following a reduction in the grant in 2023. Registrations dropped by a further 39.2% after support for electric mopeds was removed in 2024.
If the scheme ends as planned, mopeds and motorcycles will become the only personal transport segment in the UK without any purchase incentives for zero emission uptake.
Removing support risks slowing electrification in last-mile delivery, increasing reliance on larger vehicles, and placing additional cost pressures on businesses operating in urban areas.
In a joint letter sent last week to ministers in HM Treasury, the Department for Transport and the Department for Business and Trade, the coalition sets out a series of urgent actions to avoid an abrupt market shock.
The coalition is calling on Government to:
- Extend the PiMG for at least 12 months
- Review the £10,000 price cap to reflect current market realities
- Reintroduce mopeds and expand eligibility to include L6 and L7 vehicles
The organisations argue that a short-term extension would provide immediate market stability while allowing Government and industry to develop a longer-term, evidence-based policy framework.
Tony Campbell, Chief Executive, MCIA, said:
“The expiry of the Plug-in Motorcycle Grant represents a clear policy cliff edge.
“At a time when Government is investing heavily in the transition to electric cars, it makes little sense for smaller, more energy-efficient, congestion-beating vehicles to be left as the only segment without any form of support.
“The evidence shows the market responds immediately when support is withdrawn or reduced. Without action, we risk a sharp drop in uptake just as the transition to low and zero emission transport should be accelerating.
“A short-term extension – alongside sensible reforms – would provide stability while Government and industry work together on longer-term policy.”
Craig Carey-Clinch, Executive Director, National Motorcyclists Council (NMC), said:
“The NMC fully supports this MCIA-led call on the Government to act on what has become a serious disparity in its support for decarbonisation, with the number of signatories to the joint letter demonstrating serious concern across a wide range of organisations.
“This is a situation which needs urgent correction and the NMC also calls on the Government to address this hugely unbalanced situation which has been allowed to emerge.”
Symon Cook, Head of National Motorcycle Dealers Association (NMDA), said:
“Motorcycle dealers across the UK are already seeing the impact that uncertainty around the Plug-in Motorcycle Grant is having on consumer confidence. Allowing the scheme to expire without replacement risks a sudden drop in demand just as the market for zero-emission two-wheelers is beginning to grow.
“Extending the grant would provide the stability retailers and customers need while supporting the transition to cleaner, more efficient urban mobility.”
Nicholas Lyes, Director of Policy and Standards, IAM RoadSmart, said:
“If we are to achieve decarbonisation in the transport sector, consumers will need support whether they are in a car or on two wheels. The plug-in motorcycle grant remains one of the few meaningful incentives encouraging riders to switch to zero-emission two-wheelers.
“Aside from the environmental benefit, these vehicles can also play a key role in reducing congestion on our roads. We would urge the Government to extend the grant beyond April.”
Image courtesy of the MCIA
