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MCIA DEMANDS ACTION ON EURO 5

The Euro 5 product regulations for powered two-wheelers and other powered light lehicles are scheduled to come into force for all new PTW registrations on 1 January 2021. However, still-applicable EU law allows so-called “end of series” (EOS) provisions to allow the industry clear limited numbers of unregistered Euro 4 stock beyond that date. EOS was provided during the transition from Euro 3 to Euro 4 in January 2017. 

But, so far, the UK government has yet to announce Euro 4 EOS, or the details of any derogations that will be allowed. Decisions have been put off since the MCIA first raised the matter with ministers prior to the General Election, but with the Euro 4 deadline fast approaching and businesses needing to plan ahead, the MCIA is today calling on the government to announce EOS details immediately. color:#666666″>

EOS is important to our market as, unlike cars, which are made using just-in-time techniques, the lower volumes of PTWs sold and the seasonality of the market, dictate that vehicles are produced in a block, usually representing the coming year’s anticipated demand.  color:#666666″>

Inevitably, there is often a residue of unsold product at each year end that rolls into the following year. This is partly why the EU includes EOS in its regulations, but EU member states are free to announce their own individual EOS details, with this still applying to the UK while we are in transition, post-Brexit. color:#666666″>

This year the exceptional circumstances caused by the Coronavirus have brought the PTW market to a near-standstill and it is unlikely that the traditional spring and summer demand peaks will be realised, resulting in large quantities of unsold product.  As a result, the sector faces what could be a serious survival threat and therefore the MCIA has called on the UK government to announce that EOS will be introduced and take a lead during the Covid-19 crisis by postponing EOS by 12 months — which will in turn allow Euro 4 machines to be produced and registered throughout 2021 with EOS derogations taking place in 2022.   color:#666666″>

This would allow a further year to sell Euro 4 vehicles already in stock or yet to be produced due to Covid-19. A similar request has also been made to the EU by the European motorcycle industry body ACEM. It is important to point out that the MCIA is not requesting a delay to the introduction of Euro 5, but is asking for additional time to allow Euro 4 stocks to clear through the market.      color:#666666″>

Commenting on these proposals, MCIA chief executive Tony Campbell said: “We have been seeking clarity from the government on this matter for several months. In the meantime, our industry has been in limbo when it comes to Euro 5 transition planning. This has gone on long enough and we demand clarity from ministers right now, particularly as the current crisis is significantly affecting 2020 sales. We are also seeking a one-year delay on EOS as a consequence of the crisis.  Without this we estimate costs to industry running into tens of millions of pounds. Positive action from ministers is needed now.” color:#666666″>

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