Motability Operations has announced an overhaul of the vehicles leased to its customers with the axing of premium brands like Mercedes-Benz and BMW.
It said from 2035, half of all vehicles leased through the Scheme every year will be British built.
The scheme offers disabled people in the UK, leasing cars, wheelchair accessible vehicles, scooters and powered wheelchairs in exchange for their enhanced mobility allowance.
Motability is widely used by carmakers as a channel to churn cars through the system.
In a statement Motability Operations said: “The commitment to buy more British built cars reflects the Scheme’s desire to do even more to support the UK economy.
“Motability Operations, which runs the Motability Scheme, will work alongside the UK government and car manufacturers to deliver on the commitment.
“This builds on the contribution that the Scheme currently makes to the lives of disabled people while signalling strong support for the UK’s domestic automotive industry alongside the UK Government’s Modern Industrial Strategy.
In the short term, Motability Operations will work closely with UK-based manufacturers to increase the volumes of UK built cars on its fleet.
This includes doubling the number of Nissan British built vehicles that the Scheme leases to around 40,000. The intention would be that 25% of cars on the Scheme would be UK-built by 2030, up from 7% today.
Andrew Miller, chief executive of Motability Operations, said: “The Motability Scheme makes a difference to disabled people’s lives every day and our customers tell us it is a lifeline to freedom and independence.
“Working with government and the automotive sector, we want to do even more to support the economy and our ambitious commitment should put British car manufacturing into top gear.”
Chancellor of the Exchequer Rachel Reeves, said: “Backing British car manufacturing will support thousands of well paid, skilled jobs and is exactly the long-term investment our Modern Industrial Strategy delivers.
“We are growing the economy to bring down debt, cut NHS waiting lists and cut the cost of living.”