The Plug-in Motorcycle Grant (PiMG) has now expired. As of 5 April, L-category vehicles, including mopeds, motorcycles, tricycles and quadricycles, became the only segment of privately-owned motorised transport in the UK without any form of purchase support for zero emission uptake.
This is the policy cliff edge the industry has been warning about, and it is now a reality.
At a time when the government continues to prioritise transport decarbonisation and invest heavily in the transition to electric cars, the removal of support for smaller, more energy-efficient vehicles exposes a clear policy inconsistency. Notably, how can all parts of the transport system contribute effectively to net zero if one segment is left without any form of support?
Ahead of the grant’s expiry, the Motor Cycle Industry Association (MCIA) brought together a broad coalition of stakeholders, including manufacturers, logistics operators, retailers, road safety experts and clean transport advocates, to raise serious and immediate concerns with the government.
In a joint letter to HM Treasury, the Department for Transport, and the Department for Business and Trade, the coalition warned of a clear policy inconsistency and the risks to investor confidence, supply chains, and skilled employment across the UK. Those concerns remain.
The coalition set out three clear and pragmatic actions:
- Extend the Plug-in Motorcycle Grant for at least 12 months
- Revise the £10,000 price cap to reflect market realities
- Reintroduce mopeds and expand eligibility to include L6 and L7 vehicles (quadricycles)
While the grant has now ended, the need for intervention has not diminished. If anything, it has become more urgent.
An analysis commissioned by the MCIA and undertaken by WPI Economics provided a clear indication of what would happen next if no action is taken.
The findings point to a projected £50m contraction in the UK’s electric motorcycle market, alongside around 6500 fewer zero-emission vehicles on the road by 2030. This is equivalent to losing more than two years of current sales.
Crucially, this is not speculative. The sector has already demonstrated how sensitive demand is to policy signals. When the grant was reduced in 2023, registrations fell by 38.6%. Following the removal of support for electric mopeds in 2024, registrations declined by a further 39.2%.
On that basis, projections suggest that the full removal of support could lead to a further 50% reduction in sales by 2027. In other words, when incentives are withdrawn, uptake falls.
What this situation ultimately highlights is a broader gap in the UK’s approach to transport policy.
This is not a niche issue. It sits at the intersection of decarbonisation, economic growth and urban mobility. Yet L-category vehicles remain underrepresented in policy frameworks and are now uniquely unsupported within the incentive landscape.
At the same time, substantial public funding continues to support electric cars. The result is a clear imbalance in how different parts of the transport system are treated, despite contributing to the same overarching goals.
If the UK is to take a genuinely integrated approach to net zero, this gap will need to be addressed.
While the immediate impact of the grant’s expiry is becoming clear, the focus must now turn to what comes next. This is the purpose of the next phase of work being undertaken by the MCIA in partnership with WPI Economics. Building on the phase 1 analysis, this work will explore how a long-term, evidence-based policy framework can support the sustainable growth of the L-category sector. This includes assessing different fiscal and regulatory options, modelling their economic and behavioural impacts, and identifying approaches that deliver value for money while supporting uptake.
A key part of this work will be recognising the diversity of L-category vehicles, their varying power outputs, price points and use cases, and ensuring that policy reflects these differences.
The goal is not to argue for subsidy as an end in itself, but to understand what works, what is cost-effective, and how policy can support both economic and environmental outcomes.
Crucially, this will be a collaborative process. As the coalition has made clear, the industry stands ready to engage constructively and urgently with the government to develop a more coherent and effective framework.
The expiry of the grant marks a turning point. The risks that were previously forecast are now beginning to materialise. However, the situation is not irreversible. Targeted, short-term intervention, whether through a reinstated or reformed incentive, could still stabilise the market and prevent a deeper contraction. At the same time, longer-term reform offers an opportunity to better integrate L-category vehicles into the UK’s transport strategy.
The choice now is whether this moment becomes one of decline or a catalyst for a more strategic approach.
With the right policy framework, L-category vehicles can play a central role in delivering net zero, supporting economic growth, and enabling safer, more efficient urban mobility.
What happens next is a matter of policy choice.
Tony Campbell
CEO, MCIA