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Motability Drops BMW, Mercedes and Other Premium Brands, Sets Course for More UK-Built Cars

Chancellor Rachel Reeves backs the decision as supportive of UK manufacturing jobs.

Overview

  • Motability Operations has removed BMW, Mercedes, Audi, Lexus and Alfa Romeo from new leases with immediate effect to prioritise vehicles described as value and purpose.
  • The scheme targets 25% UK-built cars by 2030 and 50% by 2035, with plans to double Sunderland-built Nissans on the fleet to about 40,000.
  • Ministers say mobility eligibility for PIP will not change until Sir Stephen Timms’ review concludes, with no immediate alterations to who can access the scheme.
  • Talks over potential tax changes, including VAT treatment, were explored ahead of the Budget but were not implemented as part of this announcement.
  • Current users can keep their existing vehicles until their leases end, though premium brands will no longer be available when they renew.