2:18 pm, November 25, 2025
Premium car manufacturers say they were taken by surprise yesterday by news they were to be excluded from the Motability scheme.
Despite rumours for weeks that the government was planning changes to the charity scheme in tomorrow’s Budget, official word changes were being made were only issued to car makers late yesterday afternoon.
Manufacturer sources at some of the affected brands told Car Dealer they were only informed they were to be thrown out of the scheme at 5pm, before the charity issued a statement late last night.
‘We heard rumbles that changes were coming last week, but nothing official,’ said one source.
‘Then, last night came the news that there would be an official statement in a few hours and we were out of the scheme. Our leadership team were fuming.’
The annoucement revealed Alfa Romeo, Audi, BMW, Lexus and Mercedes-Benz were to be excluded from the Motability scheme as well as all coupe and convertible models from other brands.
Privately, executives said they were fuming the sweeping changes had been made ‘without consultation’.
Some are said to be taking legal advice on whether the decision can be challenged in the courts.
Others questioned why brands were thrown out and not cars over a certain price bracket instead.
‘If cars over £30,000 were excluded instead then at least that would have been fairer for all,’ added an angry exec.
‘Instead they’ve gone for the optics of ousting brands like ours because the brands are more recognisable and land better with the press.’
Motability also announced changes that would see by 2035 half of all cars in the scheme would have to be Brit-built models.
This plays into the hands of Nissan who are said to be delighted by the news that would be a major boost to its Sunderland plant.
Bosses at the premium marques, however, are aghast that they have been cast aside with ‘little rationale’, according to another car manufacturer source.
A seething exec said: ‘It is strange that just some premium brands have been excluded and not others – why hasn’t Volvo been included in the list? And the Chinese brands like BYD are able to continue to have it away.
‘It makes little sense to exclude some brands and not others.’
Another car manufacturer source added: ‘The timing of this announcement before tomorrow’s Budget is not without coincidence.
‘No one is under any illusions than to think the Budget will be a horror show and this announcement by the government and Motability before that will be to try and soften the blow of tax rises.’
Car Dealer contacted all the premium brands that have been ousted from the scheme.
Lexus and Mercedes-Benz refused to comment.
A spokesperson for Audi said: ‘Audi strongly believes in customer choice and is disappointed models from the brand will no longer be offered on the Motability scheme.
‘We are currently working with all stakeholders on this topic so are not in a position to comment any further at this time.’
BMW added: ‘We note the changes announced by Motability Operations today.
‘We understand this decision will be disappointing for the many BMW customers who participated in the scheme, and we will work with Motability to ensure prompt vehicle delivery for any existing orders.
‘Mini will remain available on the scheme, continuing to support access to mobility for eligible customers.’
Stellantis boss Eurig Druce did not comment on Alfa Romeo’s exclusion from the scheme, but added: ‘We welcome Motability’s commitment to support UK manufacturing and therefore our all-electric production plant at Ellesmere Port.’
Car Dealers have been left reeling at the news and today have been contacting customers hit by the changes.
They have until Sunday at 5pm to get their Motability orders in before they are excluded from the scheme altogether.
While the numbers of premium cars on the scheme were not huge, they still account for thousands of models registered for these premium brands every year.
Motability sales account for one fifth of all new cars registered in the UK every year and is the largest fleet in the UK.
Motability said: ‘The renewed focus of the scheme will be on vehicles that meet disabled people’s needs and represent value and purpose – reliable and affordable to run – while ensuring the scheme continues to offer good value.’
