During the First World War, the population of Oxford changed.

The number of
University members was significantly reduced as students, fellows and staff
enlisted. Some of their places in college accommodation were taken by soldiers in
training. Another reminder of the ongoing war was found in the influx of wounded
and disabled soldiers, who were treated in new hospitals housed in buildings such
as the university's Examination School, the town hall and Somerville College.[24]
During the Second World War, Oxford was largely ignored by the German air raids
during the Blitz, primarily as Hitler had plans to make Oxford the new capital
city.[25] Also perhaps due to the lack of heavy industry such as steelworks or
shipbuilding that would have made it a target, although it was still affected by
the rationing and influx of refugees fleeing London and other cities.[26] The
university's colleges served as temporary military barracks and training areas for
soldiers before deployment.[27]

By the early 20th century, there was rapid industrial and population growth, with
the printing and publishing industries becoming well established by the 1920s. In
1929 the boundaries of the city were extended to include the suburbs of Headington,
Cowley and Iffley to the east, and Wolvercote to the north.[16] Also during the
1920s, the economy and society of Oxford underwent a huge transformation as William
Morris established Morris Motors Limited to mass-produce cars in Cowley, on the
south-eastern edge of the city. By the early 1970s over 20,000 people worked in
Cowley at the huge Morris Motors and Pressed Steel Fisher plants. Oxford was now a
city of two halves: the university city to the west of Magdalen Bridge and the car
town to the east. This led to the witticism that "Oxford is the left bank of
Cowley".

On 6 May 1954, Roger Bannister, a 25-year-old medical student, ran the first
authenticated sub-four-minute mile at the Iffley Road running track in Oxford.
Although he had previously studied at Oxford University, Bannister was studying at
St Mary's Hospital Medical School in London at the time.[28] He later returned to
Oxford University and became Master of Pembroke College. Oxford's second
university, Oxford Brookes University, formerly the Oxford School of Art, then
Oxford Polytechnic, based at Headington Hill, was given its charter in 1991 and for
ten years has been voted the best new university in the UK.[29] It was named to
honour the school's founding principal, John Henry Brookes.

Cowley suffered major job losses in the 1980s and 1990s during the decline of
British Leyland, but is now producing the successful Mini for BMW on a smaller
site. Much of the original car factories at Cowley was demolished in the 1990s, and
is now the site of the Oxford Business Park.[30] The influx of migrant labour to
the car plants and hospitals, recent immigration from South Asia, and a large
student population, have given Oxford a notably cosmopolitan character, especially
in the Headington and Cowley Road areas with their many bars, cafes, restaurants,
clubs, Asian shops and fast food outlets and the annual Cowley Road Carnival.
Oxford is one of the most diverse small cities in Britain: the most recent
population estimates for 2011[3] showed that 22% of the population were from black
or minority ethnic groups, compared to 13% in England.[31]