German automaker BMW Group has delayed plans to re-introduce the production of all-electric MINI models at its UK’s Oxford plant, Kallanish reports.

The company said it notified the Department for Transport that it was reviewing its £600 million ($758.5m) investment plan and waiving a related £60m grant from the government. It did not provide a new timeline for BEV production at the site in Crowley, but said much of the investment is progressing “with construction well underway to make the plant future-ready.”

“Plant Oxford is at the heart of MINI production, manufacturing and exporting of a range of models, which are sought after in the UK and around the world,” a spokesperson says. “However, given the multiple uncertainties facing the automotive industry, the BMW Group is currently reviewing the timing for reintroducing battery-electric MINI production in Oxford.”

MINI BEV production was expected to resume in 2026 with two new models, the Cooper Electric hatch and the Aceman small SUV. The plan followed the shift of all-electric models from Oxford to China in 2023. At the time, it was estimated that production of 40,000 BEVs/year was taken away from UK manufacturing.

The £600m UK investment announced in 2023 would cover both MINI factories at Oxford and Swindon, paving the way for the brand to go all-electric from 2030.

BMW’s decision to pause the investment follows Stellantis’ plan to shut its van factory in Luton to focus on electric vehicle production at its Ellesmere Port plant, both in the UK. Carmakers have been lobbying the government to revise the country’s zero-emission vehicle (ZEV) mandate and easy penalties for non-compliance. They claim the required sales targets are putting hundreds of jobs at risk.

Last week, the UK government ended a consultation on how to provide the automotive industry flexibility under its EV sales rules, among other things. The outcome of the consultation will be announced within 12 weeks.  

A spokesperson for the Department for Transport says the government recognises “the global challenges car manufacturers face and have listened to their concerns.” The government says reinstating the 2030 EV deadline whilst protecting jobs is “a decision supported by a majority of manufacturers who have been working towards this date, and are on track to meet their ZEV mandate targets.”

In addition to China, MINI also manufactures the MINI Countryman BEV in Leipzig, Germany. The brand saw its car registrations (both ICE and EVs) decline 20.3% year-on-year in January, according to trade body SMMT.

Yet, BEV adoption in the UK continues to make headway, leading sales in Europe last year. In January, 29,634 new BEVs were sold in the country, representing an increase of 41.6% year-on-year.