BMW has announced a delay in the reintroduction of electric vehicle production at its Oxford Mini plant, citing multiple uncertainties facing the automotive industry. This decision has also led the company to pause work on a £600m upgrade of its Cowley plant and to decline a related £60m grant from the government, though they remain in close dialogue with officials.

The UK automotive industry has been embroiled in a prolonged debate with the government over electric vehicle production targets. Car manufacturers have expressed concerns that the required number of electric vehicle sales is excessively high. Earlier this year, the government conducted a fast-track consultation on changes to the zero emission vehicle (ZEV) mandate. Last November, Stellantis cited this mandate as a reason for closing its van factory in Luton.

In a statement, BMW emphasized that Plant Oxford is central to Mini production, manufacturing and exporting various models sought after globally. Despite the current uncertainties, the BMW Group is reviewing the timeline for reintroducing battery-electric Mini production in Oxford. The company highlighted that much of the investment is progressing, with construction underway to build a new state-of-the-art logistics facility.

BMW's plans, announced in 2023, included investing hundreds of millions of pounds to prepare the Oxford Mini factory for a new generation of electric cars, with production of two new electric Mini models scheduled to begin in 2026.

The Department for Transport (DfT) acknowledged the challenges faced by car manufacturers and is consulting on reinstating the 2030 electric vehicle deadline while protecting jobs. The DfT is investing more than £2.3bn to support the industry and consumers in transitioning to electric vehicles.