Written evidence submitted by MCIA (EVP0033)

MCIA is the organisation which represents the UK’s £7billion Powered Light Vehicle (PLV) industry.  Also known as L-Category vehicles, PLVs encapsulate, scooters, motorcycles as well as a variety of light three and four-wheel, passenger and cargo vehicles where the sector plays a significant role in last mile delivery. A growing segment of the market is quickly becoming fully electric, however all types have a role to play in the future of transport, both in an urban and rural setting.

As the representative body for the manufacturers and importers of whole vehicles in addition to component, accessories and service providers to the sector, the changes which are due to be implemented will have a significant impact on both our members and end-users.

PLVs and users are often overlooked in transport policy and it is with this in mind that MCIA is keen to work with government to ensure that they are included in future plans, given the many ways in which they support the ambitions of several government policies.

The Chief Executive of MCIA is available to give oral evidence to the Transport Select Committee if required.

Accelerating the shift to zero emission vehicles

Feasibility of Government’s plans for 2030 phase out of PLVs

Whilst it has been confirmed that sales of new petrol and diesel cars are to end in the UK by 2030, motorcycles are currently out of the scope. It is clear that they will be included in the phase out of petrol and diesel vehicles in the future but the timescale is not yet clear. Manufacturers are making steps to electrify their models, particularly in the lightweight sector. In January 2021, the product with the most registrations in the moped category was an electric vehicle and in 2020, 20 percent of all new up to 4KW products have a drivetrain that is fully electric.

The challenges of a 2030 phase out of petrol and diesel cars

In a meeting with Rachel Maclean MP, Parliamentary Under Secretary of State for Transport, MCIA manufacturer members informed the Minister of some of the barriers to decarbonisation for the Industry.

The UK motorcycle market is small in comparison with the car market and the costs of research and development for alternative powertrains would therefore be disproportionate over a relatively short timescale.

Many models are created with international markets in mind and therefore amending to suit the UK market only would be cost prohibitive.

The charging infrastructure is a challenge for this industry. It is important for this to be as simple as possible for users, so a standardised charging system, whether for removable cassette style batteries or rapid charge systems, is required.

It has been indicated that plug-in grants will be phased out when the current structure ends in 2022-23, but it is important that the replacement incentive package includes and promotes smaller vehicles. It is hard to imagine that without some monetary incentives there will be a large take up of electric vehicles, as they are currently price prohibitive for many would-be buyers. Incentives must be equitable and help those on low incomes, who would otherwise be unlikely to switch to electric vehicles.

A further challenge is related to the fuelling of the many petrol and diesel vehicles that will still be in existence after 2030. PLVs have smaller tanks and consequently smaller ranges than cars and therefore need to be able to access fuel more frequently. Whilst it may be desirable to have electric charging points in place of fuel stations as they are today, it will be necessary to ensure that petrol and diesel remains accessible.

Incremental taxation on fossil fuel beyond 2030 would disproportionally penalise lower income users unable to afford an electric vehicle.  Reducing the financial burden of switching, would be more equitable than further penalising the use of vehicles that have, in any case, a finite life.

The opportunities for PLVs presented by a 2030 petrol and diesel phase out

Smaller PLVs in particular bring many advantages when considering a charging network. Many have removable cassette-style batteries that can be taken into the home or workplace to be charged via a typical 3-pin plug. This is particularly useful for those who do not have access to off street parking, or who live in flats.

Larger PLVs which use rapid charger infrastructure can be charged more quickly than cars and vans, due to their smaller battery size and take up much less space when parked.

The phase out of petrol and diesel cars and vans presents an opportunity for government to promote the concept of The Right Vehicle for The Right Journey, whereby the focus is on the journey being taken and the most appropriate method. PLVs come in light, small-footprint 2, 3 or 4 wheel variants and are therefore a highly versatile alternative to the lines of single-occupant heavy cars that traditionally clog our streets.  A line of electrically-powered cars is still a traffic jam, but as users start to question the need to own their vehicle, there is the opportunity to expand the use of electric rental mopeds.

Introducing consumers to more information about the choices they are taking will be key. For example, the life cycle analysis of vehicles should be considered, as should the materials used and the carbon footprints of vehicles. 

Government has the opportunity to level up the incentives to encourage the take up of electric PLVs which will especially help those on lower incomes. A smaller, electric PLV is much more affordable for those on lower incomes, than electric cars. Currently the Plug In Grant contributes up to 35% of the purchase price of a new car, but only 20% of the purchase price off an electric motorcycle.

Why are these contributions not equal, or even weighted in favour of those vehicles which take up less road space and have a smaller overall carbon footprint?

Road Pricing

The case for introducing some form of road pricing

It is acknowledged that there will be a significant drop in VED contributions as a result of the 2030 phase out of new petrol and diesel cars and consequently an alternative will be required to make good that deficit.

From an environmental perspective, a pay per mile scheme could make users think more carefully about whether they need to make the journey they are planning. This would also lead to a reduction in congestion and road wear and tear. Of course, any proposed road pricing scheme must not disadvantage those on lower incomes.

MCIA welcomes a review of Vehicle Excise Duty and the possibility of VED being replaced by a Road Pricing approach. It is important that Road Pricing is proportionate to the size of vehicle, the fuel type and miles travelled. It should be as granular as required favouring lower emission vehicles but also size and road space required.

Level of public support

In terms of public support, the communication must be clear. Many users will be making a significant investment in electric vehicles and they may be under the impression that there will be no usage charges as a result. If a pay per mile scheme is introduced, presumably it will be based on use as opposed to how clean the vehicle is, while that may indeed be taken into account. The planning process must be transparent and clearly communicated.

Other examples of road pricing

There are various examples of road pricing including toll roads, toll bridges, congestion charges, ultra-low emission zones and clean air zones. There are very few examples of pay per mile schemes.

In many European countries, a vignette is required to access the motorway network.

High Occupancy Vehicle lanes are a way of dissuading users from taking single occupancy journeys. Vehicles carrying more than a specified number of passengers are able to access a priority lane which usually flows faster than that lanes with single occupancy vehicles, with the aim of encouraging car sharing or the use of public transport. Motorcycles are usually given access to these lanes. In America there are over 2300 miles of High Occupancy Vehicle Lanes.

February 2021