March 30th, 2026.



New economic analysis commissioned by the Motorcycle Industry Association (MCIA) has revealed that ending the Plug-in Motorcycle Grant (PiMG) could wipe £50 million from the UK’s electric motorcycle market and significantly stall uptake of zero emission vehicles.

The analysis, undertaken by WPI Economics, 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.

The findings have been highlighted in national media coverage today, underlining the growing concern around the potential impact of the scheme’s expiry. (https://www.telegraph.co.uk/business/2026/03/30/motorbike-sales-poised-to-plunge-after-labour-scraps-grant/)

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 5th April would create a “clear and avoidable policy cliff edge.”

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"The evidence shows the market responds immediately when support is withdrawn or reduced.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."

The findings highlight the scale of potential economic damage if the grant is allowed to lapse, with the £50 million loss reflecting a significant contraction in a growing zero emission vehicle market.

The analysis also warns that removing support risks undermining the UK’s attractiveness for investment in zero emission vehicle manufacturing and supply chains at a critical stage of the transition.

The warning comes amid clear evidence that the market is highly responsive to Government incentives:

- 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. This divergence between supported and unsupported segments provides a strong indication of the likely impact if the remaining grant is withdrawn.

- 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.

- The coalition warns this creates a glaring inconsistency in Government policy, particularly as substantial public funding continues to support electric cars.

The implications also extend beyond the motorcycle industry. Electric two-wheelers are used by:

- Logistics and delivery operators

- SMEs and self-employed riders

- Urban commuters seeking affordable transport

- 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.

Signatories also warn of potential road safety consequences. If regulated electric motorcycles become less accessible, illegal and modified high-speed e-bikes are likely to proliferate further as a low-cost alternative, operating without licensing, insurance or appropriate safety equipment.

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.

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.”