Major automotive manufacturers with a UK presence, particularly Nissan and Mini, are poised for a significant sales boost following a strategic overhaul of the Motability scheme. The organization, which provides lease vehicles to hundreds of thousands of disabled people across the UK, has declared a new goal to source 50% of its fleet from British factories by 2035. This announcement coincides with the decision to drop premium German brands such as BMW and Mercedes from the scheme entirely. The move creates a substantial market vacuum that domestically produced vehicles are expected to fill, providing a golden opportunity for factories in Sunderland, Derbyshire, and Oxford to increase their output and secure long-term viability.
The decision represents a sharp pivot in procurement strategy for Motability Operations. Previously, about 5% of the scheme’s 800,000-strong fleet consisted of premium marques, which customers paid extra to access. By eliminating these options to focus on value and specific functionality, Motability is redirecting a massive amount of demand toward mass-market vehicles. Given the scheme leases around 300,000 cars annually, the target of 50% British procurement implies a potential annual order book of 150,000 vehicles for UK plants. This is a dramatic increase from the 22,000 British-built cars purchased by the scheme last year, representing a vital lifeline for an industry that has struggled with declining volumes and external shocks.
For Nissan, the impact is expected to be immediate and substantial. The Japanese manufacturer’s plant in Sunderland is a cornerstone of UK car making, and the company anticipates the number of its vehicles bought by Motability will double as a result of this policy. Similarly, the policy could act as a catalyst for the Mini plant in Oxford. Although BMW vehicles are being removed, the BMW-owned Mini brand could thrive if the parent company prioritizes UK production of its electric models to meet Motability’s criteria. This creates a “strong incentive” for global car giants to maintain and expand their manufacturing footprints in the UK, rather than offshoring production to locations with lower costs.
The economic rationale behind the move is strongly supported by Chancellor Rachel Reeves, who views the scheme’s new direction as a mechanism to protect and create “thousands of well-paid, skilled jobs.” In an era where the UK car industry has faced threats from factory closures and supply chain crises, guaranteed domestic demand is a powerful stabilizer. Motability Operations Chief Executive Andrew Miller framed the move as a collaborative effort with the automotive sector to support the wider economy. By committing to local sourcing, the scheme is effectively using its market weight to insulate British factories from some of the volatility of the global export market.
The response from the manufacturing sector has been overwhelmingly positive. James Taylor, Managing Director of Nissan GB, explicitly welcomed Motability’s commitment to buying British, underscoring the importance of the partnership. He noted that while the primary goal of Motability remains the mobility and independence of disabled people, aligning this mission with support for UK manufacturing creates a mutually beneficial scenario. As the industry looks toward a future dominated by electric vehicles, having a guaranteed domestic customer base like the Motability scheme could prove critical in ensuring that the next generation of green cars is built in Britain.