BMW has confirmed a delay to the reintroduction of electric vehicle (EV) production at its iconic Mini plant in Oxford, blaming a confluence of factors shaping the beleaguered automotive sector.
The German carmaker said the decision includes pausing a £600m upgrade of the facility and declining a £60m grant offer from the government, although it maintained that close discussions with Westminster continue.
The UK industry has been grappling with ambitious EV targets mandated by the government, known collectively as the zero emission vehicle (ZEV) mandate, which determines the proportion of electric vehicles that manufacturers must sell. Carmakers have long argued these targets are set too high for the current market, with Stellantis notably pointing to the ZEV policy as a key factor in its decision to close its Luton van plant late last year.
Despite BMW’s re-evaluation of timelines, it insists significant elements of the original Oxford investment remain on track. Construction work is reportedly “well under way”, including a state-of-the-art logistics hub.
Production of two next-generation electric Minis was initially slated for a 2026 launch, but revised schedules have yet to be confirmed. A BMW spokesperson commented: “Given the multiple uncertainties facing the automotive industry, the BMW Group is currently reviewing the timing for reintroducing battery-electric Mini production in Oxford.”
Government officials have acknowledged the challenges confronting carmakers and are currently consulting on “reinstating the 2030 electric vehicle deadline while also protecting jobs,” a Department for Transport spokesperson noted. Ministers maintain that more than £2.3bn has been allocated to encourage both the industry and consumers to switch to electric, with the majority of manufacturers aiming to meet or exceed existing ZEV targets.
Jamie Young
Jamie is Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops.
When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders.