'No More Luxury': Motability Axes BMW and Mercedes Overnight in Push for British-Built Cars

Motability has moved with swift certainty, confirming that luxury brands such as BMW and Mercedes are being removed from the scheme overnight as part of a drive to prioritise British-built cars.

The decision follows weeks of political pressure, industry warnings and heated public debate, raising fresh questions about the true purpose of a programme that supports the mobility of more than 800,000 disabled people.

Why Luxury Cars Were Cut Without Warning

Motability's surprise move came after ministers voiced concerns that allowing claimants to lease premium vehicles created an image that was unfair to working families. Although drivers using the scheme already paid extra from their own pockets to access high-end models, the optics had become a political flashpoint.

Government allies of the Chancellor, Rachel Reeves, argued that the scheme had drifted from its original purpose. Reports suggested that officials were preparing to remove access to premium brands altogether and potentially tighten financial benefits such as VAT exemptions.

Despite no formal announcement at the time, Motability has now gone ahead and confirmed it will remove BMW, Mercedes, Audi, Lexus and Alfa Romeo immediately.

The charity emphasised that these cuts would allow it to refocus on cars that truly meet disabled people's needs. Yet the timing has raised eyebrows, especially since the premium models only accounted for about five per cent of the fleet.

For many drivers, the loss is not about luxury but about finding vehicles with reliable adaptations, boot space and comfort for long-term conditions.

A Strong Push for British-Built Cars

At the heart of the overhaul is a major new target. Motability aims for half of all its leased vehicles to come from British factories by 2035. The government has celebrated this shift, framing it as a way to support skilled jobs and strengthen the UK automotive sector.

Nissan and Toyota, which manufacture in Sunderland and Derbyshire, are expected to benefit first. Nissan has already said its UK-built sales to Motability will double.

Mini, owned by BMW, may also see incentives to revive its paused electric production in Oxford, showing that even firms losing luxury listings could still find opportunity.

Motability Operations chief executive Andrew Miller said the new direction would help place British car manufacturing into what he called top gear. The industry, struggling with the costs of transitioning to electric vehicles, has welcomed any signal that demand for UK-built models will rise.

Yet some executives warn that removing too many options from disabled drivers could shrink total orders, affecting jobs and pushing up prices in both the new and used car markets.

Disabled Drivers Caught in the Middle

Beyond industry and politics, disabled drivers now face the most immediate consequences. For thousands, the removal of premium brands is not a lifestyle downgrade but a disruption to vehicles that accommodate equipment, assistance dogs, carers or complex medical needs.

Advocacy groups have also warned that the public debate around costs and entitlement has increased hostility towards disabled people. Campaigners note that comments about cutting so-called luxury benefits risk reinforcing stigma and making everyday life less safe.

Organisations involved in the Motability Campaign Collective have urged the government to protect VAT exemptions and avoid decisions that place extra financial burdens on disabled people who already face high living costs.

While the Chancellor has argued that the changes will make the scheme fairer and more sustainable, critics say disabled households now feel caught between political optics and practical need. With many drivers soon forced to switch brands as their vehicles come up for renewal, uncertainty has become the immediate reality.

What This Revamp Means for the Future

The government insists that the new approach will strengthen public support and keep the scheme financially sustainable. Motability says it will concentrate on vehicles offering value and purpose. Ministers highlight the benefits for British jobs. Car makers anticipate production shifts that could reshape the industry.

But the core question remains whether disabled drivers will end up with fewer choices just when they need more. Premium cars may have vanished from the list, yet demand for adapted, spacious and safe vehicles continues to rise.

Over the coming months, this balance between public perception, economic strategy and disability rights will determine whether Motability's sudden shake-up is seen as necessary reform or a step that complicates mobility for the people it was built to serve.