BMW halts £600 million investment in Oxford plant amid EV demand crisis

In February 2025, BMW announced it was halting a significant £600 million investment at its Mini car assembly plant located in Cowley, Oxford, England. This decision follows a notable decline in consumer demand for electric vehicles, which has raised concerns regarding the future viability of the Cowley factory, an essential facility for Mini production. BMW emphasized that despite this setback, the Oxford plant remains central to Mini manufacturing and exports, showcasing the brand's long-standing relationship with the UK market. The investment pause has been attributed to multiple uncertainties affecting the automotive industry. This includes macroeconomic factors and a shift in consumer preferences, which seem to undermine the expected growth in electric vehicle (EV) production. The company had plans in place to manufacture battery-electric Mini models, but the need to reassess the timing of this production began to take shape as demand figures came in lower than anticipated. Government representatives, including business minister Sarah Jones, have indicated that they are working closely with BMW to support the company's eventual reinvestment in the UK. The decision to freeze the investment has drawn criticism from various quarters, particularly from Labour party officials, who argue that the situation reflects poorly on the government’s commitment to growing the automotive sector. Shadow business minister Greg Smith specifically mentioned that Labour's prioritization of zero-emission vehicles (ZEVs) has caused disruption within the industry and is damaging consumer confidence. Meanwhile, the government insists its efforts are focused on creating favorable conditions for the automotive industry to thrive, despite external pressures. The anticipated investment was expected to create around 4,000 jobs, an outcome now jeopardized by this decision. The news about BMW's pause in investment is part of a broader context where other manufacturers, such as Jaguar Land Rover and Vauxhall, are reporting setbacks due to the same underlying market conditions. There’s an emerging discussion around incentivizing local manufacturing of EVs to counteract the reliance on imported electric vehicles and bolster the domestic market, which has faced challenges from the high costs of producing ZEVs in the UK. The long-term implications of BMW's decision and the overall state of the UK automotive sector remain to be fully assessed as companies navigate these turbulent waters.