BMW Group has paused a £600m investment in its Mini car assembly plant near Oxford due to declining electric vehicle demand. This decision impacts the company’s plan to transition the Cowley plant to electric production.
Investment Plan Faces Uncertainty
In 2023, BMW announced the investment to upgrade the Cowley plant for electric Mini production. The plan aimed to secure 4,000 jobs and was backed by government funding. However, BMW is now reassessing the project’s timeline.
A company spokesperson stated, “Given the multiple uncertainties facing the automotive industry, the BMW Group is reviewing the timing for reintroducing battery-electric Mini production in Oxford.”
Impact on Oxford Plant
BMW reaffirmed that Plant Oxford remains central to Mini production. The facility manufactures and exports various sought-after Mini models. While the investment is partially underway, including a new logistics facility, the company has informed the UK government about the review. BMW also confirmed it would not accept the previously announced grant.
Despite the delay, the plant will continue producing Mini models with internal combustion engines. BMW still plans for the site to become fully electric by 2030. However, the investment halt raises concerns about its future and potential import duties.
Electric Mini Production Delay
The initial plan aimed to begin production of the electric Mini Cooper and Mini Aceman crossover SUV in 2026. This marked a reversal from BMW’s previous strategy of shifting production to China. The deal was supported by the UK government and included £60m in subsidies.
Government Response and EV Market Challenges
The UK government remains committed to promoting electric vehicle adoption. The current Labour administration plans to reinstate a ban on new petrol and diesel car sales by 2030. Automakers must meet strict electric vehicle sales quotas or face fines.
This year, 28% of UK car sales must be electric, up from 22% in 2024. However, EV demand has slowed due to high costs and limited charging infrastructure.
A Department for Transport spokesperson stated, “We recognize global challenges and are supporting industry with over £2.3 billion to drive the transition to clean energy.”
BMW’s decision to halt investment reflects wider uncertainties in the electric vehicle market. With fluctuating consumer demand, the company remains cautious about future production plans. The delay raises questions about the UK’s EV industry and long-term manufacturing strategies.
Stay tuned to London Pulse News for further updates on BMW’s investment decision and the future of electric vehicle production in the UK.
