UK electric motorcycle market faces £50m ‘cliff edge’ as grant nears end

Source: MCIA | The UK’s electric motorcycle market could face a major setback if the government allows the Plug-in Motorcycle Grant (PiMG) to expire this period. According to new economic analysis commissioned by the Motorcycle Industry Association (MCIA), the move could remove as much as £50 million from the sector by 2030 and significantly slow the adoption of zero-emission two-wheelers.

The research, conducted by WPI Economics, estimates that ending the grant would lead to around 6,500 fewer electric motorcycles being sold by the end of the decade, roughly equivalent to two and a half years of current market growth disappearing overnight. Industry representatives warn that the policy change risks creating a sudden ‘cliff edge’ for the emerging electric motorcycle sector.

A sudden stop for incentives

The PiMG is currently scheduled to expire on 5 April, leaving mopeds and motorcycles as the only personal transport segment in the UK without purchase incentives for zero-emission vehicles.

For the MCIA, this stands in stark contrast to the continued public funding available for electric cars.

Tony Campbell, CEO of the Motorcycle Industry Association, warned that the consequences could be immediate: “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 vehicles to be left without any form of support.”

According to Campbell, market behaviour already shows how sensitive the sector is to policy changes.

Electric motorcycle registrations fell by 38.6% after the grant was reduced in 2023, and dropped another 39.2% when support for electric mopeds was removed in 2024.

“These numbers show the market responds immediately when support is withdrawn,” Campbell said. “Without action, we risk a sharp drop in uptake just as the transition to low- and zero-emission transport should be accelerating.”

Industry coalition calls for urgent action

In response, an MCIA-led coalition of manufacturers, dealers, logistics operators and road safety organisations has written to ministers at HM Treasury, the Department for Transport, and the Department for Business and Trade, urging the government to avoid what they describe as an ‘avoidable policy shock.‘

The coalition is asking the government to:

• Extend the PiMG for at least 12 months
• Review the £10,000 price cap to better reflect current market realities
• Reintroduce mopeds and expand eligibility to include L6 and L7 light electric vehicles

Industry stakeholders argue that even a short-term extension would stabilise the market while a longer-term policy framework is developed.

Craig Carey-Clinch, Executive Director of the National Motorcyclists Council, says the current policy imbalance risks undermining the broader decarbonisation effort. “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 vehicles.”

Impact beyond motorcycling

The potential fallout extends well beyond private riders.

Electric two-wheelers play a growing role in:

• Last-mile delivery services
• Small businesses and self-employed couriers
• Urban commuters seeking affordable mobility

Removing financial support could slow electrification in these sectors and push operators back toward larger combustion vehicles, increasing congestion and emissions in cities.

There are also road safety concerns. Industry groups warn that if legal electric motorcycles become less accessible, the market could see a further rise in high-speed modified e-bikes operating outside regulatory frameworks such as licensing, insurance and vehicle standards.

A fragile transition

The MCIA argues that the UK risks weakening its position in the growing electric two-wheeler sector if policy support disappears at this stage. Beyond immediate sales losses, the analysis warns that the decision could also reduce the country’s attractiveness for investment in zero-emission vehicle manufacturing and supply chains.

For an industry still in its early growth phase, the coming days may prove decisive.

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THE PACK’s Take

Electric motorcycles remain one of the most energy-efficient and space-efficient forms of electric mobility, yet policy frameworks across Europe still tend to prioritise electric cars.

If the UK allows the PiMG to disappear without replacement, it may send a clear signal: two-wheel electrification is still not taken seriously at policy level. And that, in a decade defined by the search for smarter urban mobility, would be a remarkably short-sighted move.

[AI technology was used for editing and structuring this article.]