BMW Group is reportedly reconsidering plans to electrify Mini’s Oxford plant amid looming trade barriers and rising costs, casting doubt over a medium-term modernization of the site.
In 2023, the BMW Group announced plans to produce two new all-electric Mini models at its Oxford plant from 2026, with a full transition to battery-electric vehicles by 2030. These models were set to include the electric Mini Cooper as a three-door variant and the compact crossover Mini Aceman.
The internal combustion engine versions of the new Cooper generation, unveiled at the IAA 2023, have been in production at Oxford since 2024. However, the planned production of the electric variants now appears unlikely to proceed as intended.
The German business magazine WirtschaftsWoche recently reported, citing “an influential insider from the circle of BMW’s new CEO Milan Nedeljković”, that Mini production could become unviable due to impending tariffs between the EU and the UK.
If the post-Brexit trade rules, as planned, come into force on 1 January 2027, BMW may be “unable to produce and sell any electric vehicle at Mini’s main European plant”, the insider told the magazine.
Rules of Origin
The issue stems from the so-called Rules of Origin, agreed upon by the UK and the European Union following Brexit. These rules for electric vehicles were initially set to take effect at the beginning of 2024, but were postponed for three years in 2023 by member states, delaying their introduction until 2027.
“The rules stipulate that electric cars can only be traded duty-free if at least 45% of their components are manufactured in the EU or the UK,” WirtschaftsWoche explains. “For batteries, the threshold is even higher, at 60%. Vehicles that fail to meet these requirements will incur a 10% tariff.”
Virtually impossible
For electric Minis, meeting these thresholds is considered virtually impossible. BMW is therefore expected to face the 10% tariff unless governments amend the Rules of Origin or further delay them.
At the same time, Mini is dealing with rising production costs. According to WirtschaftsWoche, profit margins remain slim, particularly for the brand’s more affordable model platforms. BMW is therefore reportedly reluctant to modernize and electrify the Oxford plant under the current conditions.
As early as the beginning of 2025, British media outlets, including the BBC, reported that the BMW Group had indefinitely postponed its plans to produce electric cars at the Oxford plant.
“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 company stated at the time.
Preparatory work for EV production at the plant has been paused, though other modernization measures, such as logistics-related ones, continue. Additionally, BMW declined a £60 million government grant but remains “in close dialogue” with authorities”.
Produced mainly in… China
The electric Mini Cooper, available in three variants, Cooper E, Cooper SE, and John Cooper Works Electric, continues to be manufactured exclusively in China and exported to Europe for the time being. Oxford’s production is currently limited to ICE versions. Taking into account the import tariffs Mini has to pay on cars sold in Europe, the production cost of the cars in China must be quite a bit lower.
The Aceman, Mini’s first fully electric model range, was unveiled in China in 2024 and is also produced there. In fact, only the electric Mini Countryman is produced in Europe. The car is technically closely related to the BMW X1, and that’s why both the electric and ICE variants of the Mini Countryman are produced on the same line in Leipzig, Germany.
