BMW puts plans for building Mini EVs in Oxford on ice

The BMW Group has halted its plan to manufacture electric Mini cars at the Oxford plant in England. Two all-electric models were due to roll off the production line at Oxford next year, but this has now been postponed.

The BMW Group announced in 2023 that it would build two new all-electric Mini models in Oxford from 2026 and exclusively electric models from 2030. These were to be the three-door electric Mini Cooper and the compact Mini Aceman crossover. The new Cooper generation’s combustion-powered versions, unveiled at the IAA 2023, have already been in production in Oxford since last year.

Multiple uncertainties

“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 manufacturer explains.

Preparatory work at the plant to prepare it for EV production has been suspended, while other modernisation measures (such as those relating to plant logistics) will continue. Moreover, BMW has decided not to accept a corresponding grant of £60 million from the government but remains “in close dialogue about future plans,” the carmaker told the BBC.

The current Cooper generation was developed as an electric and combustion model in cooperation with the Chinese car manufacturer Great Wall and was initially only manufactured by the latter.

Following BMW’s latest decision, only the combustion engine versions will be produced in Europe for the moment. The Aceman, the first purely electric Mini model series, was presented in China in 2024. It is also based on the partnership with Great Wall.

When it announced that it would move production to Oxford, BMW said it would invest £600 million in the plant’s modernisation. However, the exact amount of this was not broken down: how much was earmarked for electric car production and how much for further modernisation measures. The aforementioned British government subsidy was linked to the production of electric cars and will thus no longer be claimed by Mini.

Setback

This is a further setback for the British government. With such subsidies, London wanted to expand the country’s promising production of electric cars. At the same time, however, the government has also adopted strict sales targets for electric cars, the so-called ‘Zero Emission Vehicle (ZEV) Mandate.’

Car manufacturers argue that these sales targets are too ambitious and that they cannot sell the required number of electric cars without corresponding government support measures. When Stellantis announced the closure of the Luton van plant, citing the ZEV mandate, consultations with the industry were scheduled to revise the scheme.