E-Bikes & E-Scooters – How Recent Legislative Changes are Impacting the Industry

We explore how recent legislative changes have reshaped the landscape for e-bike and e-scooter manufacturers and distributors in Ireland. We outline the strict technical requirements and the implications for market demand and compliance. We also highlight emerging opportunities, particularly in rental schemes and partnerships.

The environment for e-bike and e-scooter manufacturers in Ireland has drastically changed over the last number of years. What was once an open but uncertain market for these products has now shifted significantly towards regulation and standardisation, both in their manufacturing and use. The recent introduction of the Road Traffic and Roads Act 2023 has only cemented this trend. It has also offered some much-needed clarity by providing a legal framework for the use of e-bikes and e-scooters in Ireland.

What’s affected?

The Road Traffic and Roads Act 2023 regulates the use of all e-scooters and e-bikes in Ireland and legalises their use on Irish roads. It has established a new category of vehicle, outside of the definition of a mechanically propelled vehicle, known as Powered Personal Transporters or “PPTs” for short. These e-bikes and e-scooters are exempt from tax, insurance, registration and licence requirements. In practice, they are treated the same as regular push bikes and scooters.

To fall within the definition of a PPT, these vehicles must adhere to strict technical specifications.

Technical requirements

To be considered a PPT, e-bikes must have:

• A maximum power output of 250 watts or less
• A motor that cuts off once you stop pedalling
• A maximum speed of 25km per hour
• Front and rear lights, switched on during lighting-up hours and darkness

E-bikes with a power output or maximum speed above these limits, as well as those that can operate without pedalling, fall into a different category. They are classified the same as mopeds and motorbikes and require a licence, registration, tax and insurance to be used on Irish roads. Such vehicles are now known as e-mopeds.

To be considered a PPT, e-scooters must:

• Weigh a maximum of 25 kilograms, including batteries
• Travel at speeds of 20 km/h or less
• Have an electric motor with a maximum power output of 400 watts or less
• Have wheels of at least 200mm diameter
• Have front and rear lights, switched on during lighting-up hours and darkness, reflectors, front and rear brakes, and a bell
• Have a manufacturer’s plate showing the power output, weight, and design speed
• Be in roadworthy condition

E-scooters which exceed these criteria will remain illegal for use on public roads.

Impact on market conditions

Prior to the introduction of the Act, the use of e-bikes and e-scooters on Irish roads was widespread but technically illegal. The recent legislative changes have provided helpful certainly for would-be purchasers that their use on Irish roads is now provided for under Irish law. This is likely to have a positive impact on market demand and a stabilising impact on the industry as a whole in Ireland.

For the manufacturers and distributors of e-bikes and e-scooters that exceed the specified criteria, this legislation may have a negative effect on demand. For e-scooters that exceed these criteria, the illegality of their use on Irish roads has been crystallised. Enforcement of e-scooter rules may begin in earnest now that this legislation has been enacted.

For e-bikes that exceed these criteria, the requirements for a licence, registration and tax is likely to hinder demand for these vehicles. Of greater difficulty still, is the requirement for insurance as there appears to be very few, if any, insurance providers for high powered e-bikes at present in the Irish market. It may take some time for insurance market to provide cover for this category of vehicles and this again could have an adverse effect on demand.

Other risks

The increasing use of e-bikes and e-scooters on Irish roads has resulted in a steady increase in the number of accidents involving e-scooters and e-bikes. These accidents arise from collisions with cars, pedestrians, bikes, and other e-scooters and e-bikes. Figures from An Garda Síochána show that for the first six months of 2024, collisions involving scooters rose from 123 to 174, a 41% increase compared to the same period the previous year. Under the Act, PPT’s are not required to have the type of insurance that would typically offer coverage in case of accidents or damage caused to third parties or their property. The ever-increasing popularity of PPT’s is likely to result in the continued increase in the numbers of claims brought by private individuals and insurance companies against PPT users who are not covered under any insurance policy and who may not have the financial resources to meet these claims.

The Motor Insurance Bureau of Ireland (MIBI), which is the insurance body set up to compensate victims of uninsured drivers would typically step in to deal with these claims. However, PPT’s are not covered by the MIBI as they are not considered to be “mechanically controlled vehicles” under the Road Traffic Offences Act 1961 and therefore fall outside the scheme. This means that people who suffer personal injury and/or property damage as a result of a collisions with a PPT’s may well miss out on compensation as they will not be covered by MIBI or insurance.

Opportunities for growth

The legalisation of e-bikes and e-scooters on Irish roads has opened the door for licenced sharing schemes to be implemented across Irish cities and towns. The Department of Transport has confirmed that local councils will be able to set up licensing and contractual arrangements with rental companies, in consultation with the National Transport Authority. Similar licencing agreements have been implemented across many European cities, and they represent a significant growth opportunity for the e-bike and e-scooter industry in Ireland.

The Road Traffic and Roads Act 2023 has provided much needed clarity regarding the technical specifications required, legal status and insurance requirements for PPT’s on Irish roads. This is likely to have a positive and stabilising impact on the industry in Ireland as a whole and open the door for significant growth opportunities in the future. E-bike and e-scooter manufacturers and distributors in Ireland should be alive to these opportunities, particularly regarding the potential for licenced sharing schemes and opportunities to partner with foreign companies interested in the Irish market.

For more information and expert advice, please contact a member of our Insurance & Risk team.

The content of this article is provided for information purposes only and does not constitute legal or other advice.