The UK government might have the wrong end of the stick on a number of issues, but it clearly recognises that the UK battery-powered bike sector needs all the help it can get. Because the Department for Transport has just announced a 12-month extension to the £500 purchase grant available to consumers buying electric bikes.
The grants were cut from a maximum of £1500 in 2021 and ended altogether for moped-equivalent electric machines in April last year. However, the £500 bonus for buyers of battery bikes with 125cc and above performance is now set to continue until 2026.
The announcement came as part of a wider announcement for grants to assist taxi and van drivers, alongside further investment in the UK’s national charging infrastructure. The ‘Future of Roads’ minister, Lilian Greenwood MP, said: “From van drivers and businesses to drivers with accessibility needs, bikers and cabbies, today we are making it easier, faster and cheaper for people to switch to electric vehicles. By making the transition to zero emissions a success, we’re helping to drive growth all over the UK, putting more money in people’s pockets and rebuilding Britain to deliver our Plan for Change.”
Speaking to BDN, Gareth Hughes, UK general manager at electric bike market leader Vmoto, said: “It’s great news for us that the government has decided to extend the e-grant for another year. With all the recent budget cuts and changes in funding, we had feared the worst and had prepared and planned ahead for life without any grant assistance.
“Its continuation has effectively doubled the profit margins for dealers across our entire product line, making it much easier for them to sell our electric models. For example, our latest Stash model now allows dealers to earn a solid profit of just under £1,500 per unit, which is fantastic for their business and shows the government’s ongoing support for the electric product. This extension is a big boost for growth and stability in this fast-changing market.”