BMW Postpones £600 Million Electric Car Investment Amidst Uncertainty

BMW has announced a delay in its £600 million plan to transition its Mini plant in Cowley, Oxford to electric vehicle production. The manufacturer is reassessing the timing of this shift amid many uncertainties in the automotive landscape and has chosen not to accept a £60 million government grant linked to the initiative, even as it maintains open discussions with government officials.

The company remains committed to making the Oxford facility "future-ready" by continuing construction projects, including the development of a modern logistics center. The work underway is part of broader plans that originally aimed to start the production of two new electric Mini models in 2026, demonstrating BMW’s long-term ambition to transform its manufacturing processes.

At the same time, industry-wide challenges are emerging due to strict government mandates for zero emission vehicles (ZEVs). The new targets, which require 28 percent of vehicle sales to be electric by 2025 and predict a full ban on new petrol and diesel engines by 2035—with a significant increase to 80 percent battery-electric vehicles by 2030—have been criticized by some manufacturers as too ambitious, causing disruptions such as the closure of Stellantis’ Luton van facility.

In response, the Department for Transport has revealed investments totaling £2.3 billion aimed at supporting the transition towards electrification. The government is also considering adjustments to the 2030 electric vehicle deadline, a move that has gained support from manufacturers who are striving to meet ZEV targets while also safeguarding jobs in the sector.