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Electric Moto Incentives Cut In The UK


advrider

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The Governments in many countries are offering incentives to get people to purchase electric vehicles.  For example, in the EU, Austria, Belgium, Sweden, France, Germany, Italy, and Monaco offer some type of incentive.  And the US and UK governments also have programs to incentivize people to transition away from internal combustion.

But in the UK, the government’s incentive plan is changing.  On December 15, without prior notice to the public, the Department for Transport made changes to their plan that substantially guts the previous incentives.  Although they are not eliminating their program, they are making changes that severely impact the grants that electric motorcycle purchasers may receive.

Previous incentive

Under the previous scheme, all new street-legal electric motorcycles would receive a significant government-subsidized price reduction.  It provides up to £1,500 (~$1,985) or 20%, whichever was smaller.

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Energica is yet to announce whether it will offer a subsidy to UK buyers to make up for their bike’s program ineligibility.

But that is no longer the case.  Battery-powered motorcycles selling for more than £10,000 (~$13,245) no longer qualify for the grant.  The remaining battery-powered bikes will still see some grant money.

Motorcycles less than £10,000 will receive a grant of 35% up to a maximum amount of £500 (~$660).  Bikes classified as mopeds will also get their price tags reduced by 35%, but only to a maximum amount of £150 (~$200).

Industry angry

Obviously, the UK’s motorcycle industry is not happy with the changes.  Motorcycle Industry Association (MCIA) Chief Executive Tony Campbell is highly critical of the changes saying:

“This is not a way to incentivize the consumer to think electric and buy electric products.  What this will do, clearly, is it suddenly completely changes the landscape of the affordability of an electric power two-wheeler.

“If you’re looking at one of the cheaper model Zeros for around £10,000, that £1500 could’ve been the difference, or the motivator.”

Incentive money expended elsewhere

Campbell believes that the changes are likely the result of the government’s spending in other areas.  He believes that continuing the program would maximize the conversion to electric two-wheelers:

“£150 is 10% of what the previous grant was, so they’ve taken 90% away.  It’s purely spreadsheet politics. It’s not about decarbonization, it is about the fact that they’ve probably overspent on other sectors and now we’re clearly paying the price as well.”

“Moped category vehicles make up roughly 50% of the market now.  In most cases, the grant – as it was – fundamentally aligned an electric powered two-wheeler with its internal combustion engine equivalent, which is why we’ve seen such a success rate in the grant and its impact in sales.”

“The moped category this year will probably end up with around 10,000 vehicles – half of which will be fully electric.  If you look at the 50% it looks like a fantastic success story, but this is only the tip of potentially what the iceberg could look like.”

“Therefore, it’s ridiculous at this point, to change the grant when it has been so successful.”

The changes may have a drastic impact on electric motorcycles sales.  Most non-scooter electric bikes currently exceed the £10,000 purchase price limit.  As such, they will receive no incentives at all.  Electric motorcycle manufacturers like Zero, Energica, and Harley-Davidson/LiveWire may see severe impacts.  They do not sell any bikes priced lower than the new £10,000 purchase limit.

incentives

Harley-Davidson/LiveWire have already said that they will offer a £1,500 subsidy on the LiveWire until at least January 22, 2022. Photo credit: Harley-Davidson

Manufacturers stepping up

The changes seem put electric motorcycle manufacturers into a corner (at least in the UK). However, some are taking steps to prop up sales.  Zero Motorcycles and Harley-Davidson/LiveWire are already announcing that they will continue to offer buyers a £1,500 subsidy.

Harley-Davidson/Livewire say that they will cover the incentive until at least January 31, 2022.  Zero Motorcycles is also willing to subsidize the £1,500 incentive across their entire motorcycle lineup until January 31, 2022.  But how long either company will continue the fund the incentive, in the long run, is anyone’s guess.

Zero Motorcycles

The Managing Director of Zero Motorcycles Europe, Umberto Uccelli, was completely surprised by the announcement.

“We were stunned to hear of the withdrawal of the Office of Zero Emission Vehicles’ grant on Wednesday, which came completely out of the blue.”

But he did confirm that Zero would continue the subsidy until January 31, 2022.

“After consultation with our dealer network, we are able to offer a £1500 subsidy, equivalent to the outgoing grant, to purchasers of a new Zero motorcycle until the 31st of January.”

“This ensures that those thinking about buying a Zero will have a transitional period in which to make their purchase at the price they would have paid prior to Wednesday’s announcement.”

Energica motorcycles

Energica, the Italian sportbike manufacturer, has yet to comment on the changes publicly.  As of the writing of this article, Energica’s UK website doesn’t mention the government’s change,  nor does it say whether it will subsidize the incentive.

But are these changes out of line with what some countries have done with their incentive programs?  For example, in the US, electric car prices can knock the vehicle out of the incentive program.

Not a big deal?

So should the UK’s changes be considered “no big deal?”  Or, are they something that will detrimentally impact people’s desire to purchase electric motorcycles.  Let us know what you think in the comments below.

Vezi sursa

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