The Motorcycle Industry Association (MCIA) has today (25 February 2026) warned that the UK’s motorcycle sector faces an imminent policy cliff edge, as the Plug-in Motorcycle Grant (PiMG) is set to expire in April with no replacement currently proposed.

If the scheme ends, L-Category vehicles – including mopeds, motorcycles, tricycles and light four-wheeled vehicles – will become the only road transport segment without any form of government subsidy support.

MCIA warns this risks creating avoidable market disruption, at precisely the moment the Government is seeking to encourage the uptake in low and zero emission vehicles, reduce congestion and deliver economic growth.

Mopeds, motorcycles and other powered light vehicles play a critical role in urban mobility, last mile logistics, affordable commuting and air quality improvements. They are among the most space-efficient and cost-effective low / zero emission transport solutions available.

Without continued support, the sector faces:

• A sharp fall in zero emission electric motorcycles sales
• Reduced investor and manufacturer confidence
• Slower progress on congestion and air quality
• Increased space for unsafe, illegal e-scooters and high-powered e-bikes to proliferate

MCIA is calling for an urgent 12-month extension of the existing grant to provide immediate market stability and prevent a damaging policy gap. Alongside this, Government should modernise the scheme to reflect market realities – including reviewing the current £10,000 price threshold, which now excludes a significant proportion of zero emission motorcycles – and reinstating mopeds while extending eligibility to L5, L6 and L7 vehicles. This would ensure support is aligned with the full range of L-category vehicles capable of contributing to net zero, congestion reduction and affordable transport.

Alongside this, MCIA has commissioned independent economic and fiscal modelling from WPI Economics to assess both the short-term consequences of grant expiry and the long-term opportunity for smarter reform.

The work will look at:

• The economic and environmental cost of allowing the scheme to lapse
• The return on investment from extension and / or changes to improve the functioning of the scheme
• The potential economic and environmental benefits of broader options to support the uptake of L-category vehicles.
MCIA stresses that extension is the minimum step required to avoid immediate disruption, but that the bigger prize is a modernised and better targeted framework that reflects the evolving role of powered light vehicles in the UK’s transport mix.

Commenting, MCIA CEO, Tony Campbell, said:

“We are facing a clear and avoidable cliff edge. If the PiMG expires without replacement, our sector will be the only personal use transport mode without support – sending the wrong signal at the wrong time.

As a minimum, the Government must extend the PiMG for at least another 12 months to provide stability. But this is an opportunity to take a more strategic approach – modernising outdated thresholds, reinstating mopeds and recognising the role of L6 and L7 vehicles in urban logistics and local mobility.

The Government is rightly focused on growth, clean air and affordable mobility. Our vehicles directly support all three. At a time when spending must work harder, these vehicles offer one of the most cost-effective transition tools available

This is not about subsidy for its own sake. This is about making proportionate, evidence-led policy choices that deliver growth, confidence and cleaner cities”.

Jim Freeman Chair of the BMF said:

“The BMF fully supports the MCIA’s call for the Government to extend the current Plug-in Motorcycle Grant (PiMG).

The UK’s low-emission vehicle grants policy was designed to support the acceleration of electric vehicle uptake. The plan now to cut the PiMG grant for motorcycles will do the exact opposite; completely undermining future zero-emission motorcycle sales and leaving the motorcycle sector as the only personal-use transport mode without government support.

Getting more people onto electric mopeds and motorcycles in urban environments is significantly more environmentally friendly from a carbon emissions perspective than an electric car and also reduces congestion. The Government needs to fully support motorcycling as a sustainable future transport option. The plan to now cut the PiMG is a backwards step that flies in the face of the Government’s wider Net Zero ambitions.

The Government needs to think again and extend the PiMG.”

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MCIA represents over 95% of the supply side of the industry; the manufacturers and importers of powered two wheelers (PTWs) and other PLVs (or L-Category vehicles), accessory and component suppliers and companies providing associated services.

For more information about MCIA, please call 07835 146155 or email

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Examples and definitions of the different L-Category Vehicles (L1 to L7) can be found here.

Link to MCIA original post – click here

Top image courtesy of MCIA