BMW pauses £600million plan to make electric Minis in Britain over 'uncertainty' in industry - months after Vauxhall bosses blamed Labour's EV mandate for death of Luton car plant

BMW has paused a planned £600million investment in its UK car manufacturing plant because of uncertainty in the industry.

In 2023, it was announced the Mini brand would be made all-electric by 2030 with production due to start in Oxford in 2026.

But due to 'multiple uncertainties facing the automotive industry', the BMW Group said it is now rethinking the plan - and is currently making the British icon's next generation at plants in China.

Mini has said construction in Oxford was underway 'to make the plant future ready' but has told the UK government it will be reviewing the timeline for production, knocking back a £60million grant from ministers for the project at the same time.

A spokesperson for BMW said: 'Given the multiple uncertainties facing the automotive industry, the BMW Group is currently reviewing the timing for reintroducing battery-electric Mini production in Oxford.

'As part of this discussion, we agreed not to take the previously announced grant, but we remain in close dialogue about our future plans.'

It was initially promised that the electric vehicle initiative at the plant in Cowley would help secure jobs in Oxford and at a body-pressing facility in Swindon.

But BMW's decision to delay the reintroduction of electric vehicles at the Oxford BMW factory - where petrol Minis are made - will likely lead to a loss in expected employment and spending in the country.

Instead, the electric version of the British icon is currently being produced at a plant in Zhangjiagang, China.

The move comes months after Vauxhall parent firm Stellantis blamed Labour's electric vehicle mandate for the closure of their van plant in Luton, which put 1,100 jobs at risk.

The UK's zero emissions vehicle (ZEV) mandate requires car firms to sell a certain amount of electric cars each year or face financial penalties.

This year, they require 28 per cent of all new car sales in the UK to be zero-emission vehicles.

The government has already faced backlash from the UK automotive industry, which has said the expectations are too high and not enough is being done to support car makers and encourage the uptake of electric cars.

The general consensus among motoring industry experts and executives is that the government need to show support including tax breaks to convince drivers to switch away from petrol and diesel.

Academics say demand for EVs has 'flatlined' because of their huge upfront cost compared to petrol and diesel rivals and concerns over running out of battery.

Dr Jonathan Owens, a senior lecturer at the University of Salford's business school, previously told MailOnline the mandate has become 'more of a hinderance than a help'.

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He said: 'While charge point numbers are increasing, this needs to accelerate further to align support with the ZEV mandate for manufacturer's targets, which will also support consumer confidence to buy into the market.'

Car makers also face stiff competition from Chinese brands such as BYD and the now Chinese-owned MG, which make very cheap electric cars at an unimaginable scale.

Subsequently, Britain's car market is flooded with cheap Chinese imports putting jobs and investment at risk.

The Department for Transport said it recognised the challenges car manufacturers were facing but the majority of manufacturers are on track to meet their ZEV mandate targets.

On top of that the industry is contending with US President Donald Trump's threat to impose a 25 per cent tariff on all US auto imports.

He has long railed against what he calls the unfair treatment of US automotive exports in foreign markets and vowed to impose levies 'in the neighborhood of 25 per cent' on imported vehicles.

Mr Trump said the automotive tariffs could come as soon as April 2, the day after members of his cabinet are due to deliver reports to him outlining options for a range of import duties as he seeks to reshape global trade.