BMW Delays Mini BEV Production in UK Amid Industry Uncertainty

BMW Factory

Shift in EV Policy and Market Dynamics Impacts Oxford Plant Timeline

BMW Group, owner of the Mini brand, has postponed the launch of Mini battery electric vehicle (BEV) production at its Oxford facility in the UK. The company attributes this decision to ongoing uncertainty in the automotive industry, particularly regarding the UK's evolving electric vehicle (EV) policies and volatile demand.

Grant Rejected as Policy Shifts Cloud Investment Decisions

BMW has chosen not to accept a planned grant from the UK government for the Oxford plant. However, both parties confirm they will continue discussions about future projects. The UK government recently began consulting on plans to phase out new petrol and diesel car sales by 2030. Earlier changes to these deadlines have introduced doubt among manufacturers, prompting a more cautious approach to new EV investments.

Europe’s EV Market Faces Uneven Demand and Intense Competition

While UK EV sales surged 41% year-on-year last month, demand fell by 27% in Germany last year. Moreover, even where demand for electric cars is rising, buyers increasingly prefer lower-cost Chinese EVs. This trend puts additional pressure on established European automakers like BMW, as they struggle to compete with more affordable imported alternatives.