The UK’s automotive giants, including Nissan and Toyota, have received a major vote of confidence from the Motability scheme, which has announced a strategic pivot to prioritize British-built vehicles. In a bid to support the national economy and secure skilled jobs, the scheme has declared that it will aim to source 50% of its fleet from UK factories by 2035. This “Buy British” directive is accompanied by the immediate removal of premium German brands such as BMW and Mercedes-Benz from the scheme’s vehicle list. The move is being hailed by industry leaders and Chancellor Rachel Reeves as a critical step in revitalizing a manufacturing sector that has faced years of decline and instability.
The mechanics of the Motability scheme allow it to wield immense market influence. It buys cars from manufacturers and leases them to disabled drivers in exchange for their mobility allowance. By committing to purchase half of its annual 300,000 vehicles from domestic sources, the scheme is effectively promising to buy 150,000 British cars a year within the next decade. This is a dramatic increase from the current level of 22,000 units. For mass-market manufacturers with a UK footprint, this provides a level of demand security that is rare in the volatile automotive market. Nissan, which operates the massive Sunderland plant, expects to see its sales to the scheme double, while Toyota’s Burnaston factory also stands to gain significantly.
The exclusion of premium brands like BMW and Mercedes is a calculated trade-off. While these cars were popular with a segment of users who were willing to pay extra for them, they did not contribute to the UK manufacturing base in the same way domestic models do. Motability Operations has stated that the removal of these brands allows them to focus on vehicles that represent “value and purpose” for their disabled customers. This aligns with the government’s broader economic goals, as highlighted by Chancellor Reeves, who noted ahead of the budget that the changes would support thousands of jobs. The move is also seen as a way to justify the continued tax breaks the scheme enjoys, such as VAT exemption, by demonstrating a tangible return on investment for the British taxpayer in the form of industrial support.
The policy also has the potential to reshape investment decisions for global car companies. Mini, owned by BMW, is a prime example. With the BMW brand excluded, the parent company has a strong incentive to ensure that Mini production—particularly of new electric models—remains in the UK. If the Oxford factory is prioritized, Mini can capture a significant share of the Motability market. Motability Operations has framed this as “opening the door to new investment,” using their fleet volume as a carrot to keep production lines running in Britain. This is crucial at a time when total UK car production is at risk of falling below 700,000 units due to various external pressures.
Industry response has been swift and positive. James Taylor, managing director of Nissan GB, praised the scheme’s commitment, stating, “Nissan welcomes Motability’s commitment to buy British-built cars and its support for UK manufacturing.” He emphasized the dual role of the scheme: facilitating independence for disabled people and driving the economy. By linking these two objectives, Motability is fostering a scenario where the provision of mobility aids directly contributes to the livelihoods of British workers. As the scheme transitions toward this new model, it is set to become a cornerstone of the UK’s industrial strategy for the next decade.