Budget backs electric cars but leaves low and zero emission motorcycles behind, warns MCIA
• Low and zero emission motorcycles received no fiscal incentives, despite multiple new measures for cars.
• The Plug-in Motorcycle Grant (PiMG) is still set to end in April 2026, while the Electric Car Grant has been extended to 2029-30 with an additional £1.3bn in funding.
• The Government raised the Expensive Car Supplement threshold to £50,000 for electric cars but has not reformed the outdated £10,000 threshold applied to electric motorcycles, which no longer reflects real-world EV pricing.
• Motorcycles are excluded from the new EV mileage tax (eVED) - a positive acknowledgement of the sector’s different transition timeline - but this alone does not constitute meaningful support.
• MCIA is calling on the Government to:
-Work with MCIA to implement a comprehensive and bespoke consumer and business incentives package to encourage low and zero emission moped, motorcycle and wider L-Category vehicle uptake.
- As a minimum, extend the PiMG and increase the price threshold to reflect actual electric motorcycle costs.
The Motorcycle Industry Association (MCIA) has warned that yesterday’s Autumn Budget delivers major fiscal incentives for electric cars while offering nothing for mopeds, motorcycles or quadricycles - despite their lower emissions, lower energy use, and clear congestion-reduction benefits as they use far less road space.
The Government announced a £1.3bn extension of the Electric Car Grant, a £50,000 Expensive Car Supplement threshold for zero emission cars and confirmed new car-focused VED arrangements from 2028. No equivalent support has been provided for L-Category vehicles, and the PiMG remains due to end in April 2026.
The Budget represents a significant divergence in the treatment of different zero emission modes, and risks locking in a car-centric approach at a time when cities urgently need more efficient mobility options.
MCIA Chief Executive, Tony Campbell, said:
“This Budget once again pours billions into the electric car sector while offering nothing for low or zero emission mopeds and motorcycles. It is a car-centric approach that ignores the reality: mopeds, motorcycles and light vehicles cut congestion, use far less energy, generate far less carbon in production and have a lower environmental footprint than cars.
If the Government is serious about decarbonising transport, it cannot keep treating our sector as an afterthought. Extending the Electric Car Grant while letting the Plug-in Motorcycle Grant expire makes no sense - environmentally, economically or politically.
We are calling for immediate parity of treatment. Without basic fiscal support, the UK will fall behind, and consumers will simply be priced out of cleaner, more efficient mobility.”
ENDS
Notes for Editors:
MCIA is the body that represents the UK L-Category vehicle industry. L-Category vehicles can be defined as motorised lightweight scooters, motorcycles, tricycles and quadricycles, typically with zero or low-emission power.
Within regulation they are defined as ‘L-Category’ vehicles (Regulation 168/2013) and are a great solution to the congestion and air quality challenges we all face. They are also sometimes referred to as powered light vehicles (PLV).
For more information about the work of MCIA and L-Category vehicles, or to interview MCIA’s CEO, Tony Campbell, please contact Siobhan Kirk at s.kirk@mcia.co.uk.
Key Budget measures and the impact on the sector:
1. £1.3bn Electric Car Grant extension – no support for motorcycles
Extending the car grant to 2029-30 removes any doubt that affordability barriers require intervention. Yet the PiMG, which already provides far smaller subsidies, is scheduled to end in 2026. This will distort consumer behaviour towards cars and undermine wider transport aims.
2. Expensive Car Supplement threshold raised to £50,000 – motorcycle thresholds unchanged
Electric motorcycles remain significantly more expensive than ICE equivalents, but the VED threshold for electric motorcycles has not been updated since its introduction. Reform is needed to reflect today’s price realities.
3. New eVED system – motorcycles excluded for now
While MCIA welcomes Government recognition that motorcycles are at an earlier stage of technological transition, exemption from future road use taxes must be part of a coherent package that also includes positive incentives.
Today’s Budget - while positive for cars - creates a glaring imbalance that must be corrected if the UK is to support a diverse, resilient and efficient transport system.