BMW has confirmed it is delaying the reintroduction of electric vehicle production at its Oxford mini plant, citing “multiple uncertainties facing the automotive industry”.
The decision has put a £600m investment on hold and raised questions about the UK’s transition to electric vehicles.
The German carmaker, which has owned Mini 2000, had announced the investment last year to upgrade its Cowley plant for battery-electric Mini production.
The plan, which was supported by government-backed funding, was set to generate 4,000 jobs and mark a significant shift towards an all-electric future for the plant by 2030.
However, BMW will now review the timeline for producing battery-powered Minis in Oxford.
“Given the multiple uncertainties facing the automotive industry, the BMW group is currently reviewing the timing for reintroducing battery-electric Mini production in Oxford”, the firm said in a statement.
The firm has also decided not to accept the previously announced £60m government grant but remains in “close dialogue with officials”, reported the BBC.
The production of two new electric Mini models, which were initially scheduled to begin in 2026, is now uncertain.
Instead, the Cowley plant will continue manufacturing internal combustion engine Minis while BMW reassesses its electric vehicle strategy.
Despite the delay, the company stated that much of the investment was still progressing, including a new ‘state of the art logistics facility.’
The delay comes amid wider concerns in the UK automotive industry over electric vehicle production targets.
Under the zero emission vehicle (ZEV) mandate, car manufacturers must ensure that a growing percentage of their sales are electric.
Consumer demand for EVs has also waned due to concerns over charging infrastructure and the costs associated with switching from petrol and diesel.
The UK government has been reviewing its EV policies and is consulting on reinstating the original 2030 ban on new petrol and diesel cards, a policy which was introduced by Boris Johnson’s administration.
The Department for Transport has been approached for comment.