
A pot of up to £7.5 million ($A14.3 million) will be made available until 2020 for people who purchase electric motorcycles and scooters in the UK, the government has announced.
The subsidy will be capped at £1500 ($A2860) per vehicle, making qualifying vehicles up to 20 percent cheaper.
"This is significant development as it recognises the part motorcycles and scooters can play in a low carbon future," said Steve Kenward, the CEO of the Motorcycle Industry Association. "The subsidy will encourage more people to opt for electric motorcycles and scooters, which will help solve the UK’s appalling congestion problem.
"And economically, it will provide a much needed boost to this sector of the automotive industry. We hope this will result in increased investment in UK research and development for electric-powered two-wheel vehicles. We also hope it will give manufacturers which already have electric models for sale in mainland Europe the confidence to launch in the UK."
UK Transport Minister Baroness Kramer said: "This £7.5 million for electric bikes demonstrates our commitment to all ultra-low emission vehicles, from motorbikes to cars and trucks. From navigating city streets to putting in the motorway miles there is now a genuine low emission choice for everyone and electric vehicles are now ready to go mainstream. We are determined that the UK continues to be at the forefront of this vital revolution in transport."
The UK Government is currently finalising details of the scheme, including the grant level and final eligibility criteria, but it could be up and running in dealerships as early as June 2015.