BMW has temporarily halted its £600 million investment plan aimed at producing electric Mini cars at its Oxford plant, raising concerns about the future of the historic facility as the transition from petrol vehicles progresses more slowly than anticipated. This decision adds to a series of setbacks for the UK automotive sector, following plant closures by companies like Honda, Ford, and Jaguar Land Rover over the past ten years. In November, Stellantis cited UK electric vehicle sales targets as the reason for its decision to close its van factory in Luton, putting approximately 1,100 jobs at risk.
The German automaker stated, “Given the multiple uncertainties facing the automotive industry, the BMW group is currently reviewing the timing for reintroducing battery-electric Mini production in Oxford.”
Automobile manufacturers have been urging the UK government to relax its electric vehicle targets, which mandate that a certain percentage of each company’s annual sales must be zero-emission vehicles. These targets are set to increase from 28 percent this year to 80 percent by 2030, with companies facing fines of £15,000 for each non-compliant vehicle.
While sales of electric vehicles (EVs) are on the rise in the UK, they remain below the official targets, leading carmakers like Nissan to caution that UK jobs could be jeopardized unless the government adjusts its EV sales policies.
According to the original plan announced in 2023, BMW had intended to produce two new electric models, the three-door Mini Cooper and the smaller Mini Aceman, at the Cowley site. This move was expected to provide a lifeline to the plant by reducing its dependence on petrol cars, which the German company aims to phase out by 2030.
These two models, developed in collaboration with China’s Great Wall Motor, are currently manufactured in China and sold in the European Union. Consequently, they have been affected by higher tariffs imposed by Brussels on Chinese EV imports in October.
The Society of Motor Manufacturers and Traders reported a 1.3 percent decline in new Mini car registrations in the UK last year, totaling 46,975 vehicles. Meanwhile, data from Schmidt Automotive Research indicated a 4.9 percent increase in 2024 registrations of electric Mini cars in western Europe, including the UK, reaching 36,932 vehicles.
The UK government recently concluded its fast-track consultation with the automotive industry, seeking ways to enhance flexibility within the scheme to allow manufacturers more leeway. The Department for Transport stated, “We recognise the global challenges car manufacturers face and have listened to their concerns … while also protecting jobs.”
Following the consultation’s completion, Ford UK boss Lisa Brankin called for purchase incentives and additional government support, warning that the “adoption of electric vehicles isn’t happening fast enough.” The American company announced 800 job cuts in the UK last year, citing slower than expected EV sales.
