Mini Delays UK Electric Vehicle Production Amid Industry Uncertainty

Mini’s plan to produce electric vehicles in the United Kingdom 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 in the automotive industry as the reason for delaying the transition. While the company hasn’t provided a new timeline, its statement to Reuters confirms that it is reviewing the timing for reintroducing battery-electric Mini production in Oxford.

Several factors likely contributed to the change in plans:

• Slowing EV demand – Sales of electric 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 in 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. However, it has since decided not to take the grant as it reassesses its strategy.

What Happens to the Oxford Plant?

While Mini is delaying EV production, BMW has stated that it is still working to make the Oxford facility “future-ready.” The automaker remains in discussions with the British government regarding its long-term manufacturing plans.

A Growing Trend Among Automakers

Mini isn’t alone in adjusting its production strategy. Other manufacturers are making shifts due to 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 be built in the U.S. to remain competitive.

A Temporary Setback or a Bigger 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 is a short-term adjustment or a longer-term shift away from UK production remains to be seen. One thing is clear: the road to full electrification is proving to be more complex than many automakers originally anticipated.