BMW halts £600 million Mini investment amid EV demand decline

BMW Group has paused its £600 million investment in the Mini car assembly plant in Oxford due to declining demand for electric vehicles and uncertainties in the automotive industry. Initially announced in 2023, the plan aimed to upgrade the Cowley plant for electric Mini production, with a projected start date of 2026, supported by UK government grants. The company confirmed that while the plant will continue producing internal combustion engine models, the timeline for transitioning to all-electric production by 2030 is now under review. This development raises concerns about the future of the Oxford plant, which employs 4,500 people and was expected to secure jobs in electric vehicle production. Critics argue that Labour's economic policies may have contributed to this setback, as the automotive industry faces mounting pressures and challenges in meeting strict EV sales targets. BMW's decision reflects broader trends within the industry as manufacturers navigate the complexities of transitioning to electric vehicles amidst fluctuating consumer demand.