Automotive
Mini’s plan to supply electric vehicles in the UK has hit a roadblock. The BMW-owned brand had initially announced in 2023 that its Oxford assembly plant would begin manufacturing electric Minis in 2026, but that timeline is now uncertain.
Why Is Mini Rethinking Its EV Plans?
BMW Group cited multiple uncertainties within the automotive industry as the explanation for delaying the transition. While the corporate hasn’t provided a brand new timeline, its statement to Reuters confirms that it’s reviewing the timing for reintroducing battery-electric Mini production in Oxford.
Several aspects likely contributed to the change in plans:
- Slowing EV demand – Sales of electrical vehicles have softened in recent months, raising concerns about market readiness.
- Potential U.S. tariffs – Former U.S. President Donald Trump has threatened to impose a 25% tariff on imported vehicles, which could impact Mini’s ability to sell its UK-built EVs within the U.S.
- Financial reconsiderations – BMW had pledged £600 million ($757 million) to convert Mini into an all-electric brand and even secured a UK government grant in 2023. Nevertheless, it has since decided to not take the grant because it reassesses its strategy.
What Happens to the Oxford Plant?
While Mini is delaying EV production, BMW has stated that it remains to be working to make the Oxford facility “future-ready.” The automaker stays in discussions with the British government regarding its long-term manufacturing plans.
A Growing Trend Amongst Automakers
Mini isn’t alone in adjusting its production strategy. Other manufacturers are making shifts as a result of changing market conditions and potential trade tariffs:
- Volkswagen Group is rumored to be considering moving some Audi and Porsche production to the U.S.
- Mercedes-Benz CEO Ola Källenius has hinted that C- and E-Class models could possibly be in-built the U.S. to stay competitive.
A Temporary Setback or a Greater Shift?
Mini’s delay in UK electric vehicle production reflects a broader industry trend as automakers navigate economic uncertainty, shifting regulations, and fluctuating EV demand. Whether this can be a short-term adjustment or a longer-term shift away from UK production stays to be seen. One thing is evident: the road to full electrification is proving to be more complex than many automakers originally anticipated.
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This Article First Appeared At www.automotiveaddicts.com
