BMW is investing £600 million into upgrading its Oxford plant and building electric Mini models in the UK, strengthening the country’s development of electric vehicles (EVs).
The car giant’s investment – boosted by around £75m of government funding – will take the UK’s investment into the automotive sector to over £6bn in the last two years. It will be spent building a new area for installing EV batteries, developing production lines and extending its body shop on the Cowley plant.
Last year, BMW said it would make most of its electric Minis in China, as the Oxford factory is not “geared up” for EVs, as the car manufacturer moves towards making the Mini brand full electric by 2030.
The U-turn, however, will now secure 4,000 jobs and promote the development of EVs in Britain.
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Prime minister Rishi Sunak said BMW’s investment was “another shining example of how the UK is the best place to build cars of the future”.
Business and trade secretary Kemi Badenoch told the BBC’s Radio 4 Today programme that the news was “exciting” and that it would ensure the sector “continues to be buoyant”.
“The automotive sector is one that is very critical to the UK economy and it is facing headwinds, so ensuring we’re able to sustain it with continual investment in the industry is fantastic.”
Chancellor Jeremy Hunt said also added that BMW’s investment was “a huge vote of confidence in this country as a global leader in electric vehicles”.
“This industry is motoring, creating thousands of jobs and powering our green transition,” he added.
Is BMW’s investment a positive for the UK’s EV industry?
BMW follows Stellantis and Tata investing in EV production in the UK.
In July 2023, Jaguar Land Rover owner Tata unveiled its £4 billion investment on a flagship electric car battery factory in the UK, following uncertainty about whether the deal would go to Spain instead.
Stellantis has began producing electric vans at its Chesire factory while Nissan is expanding its EV output at its Sunderland factory.
Birmingham Business School’s David Bailey said the BMW announcement will be “very good news” for the UK EV industry.
“The UK needs to shift towards EVs quickly. The 2035 deadline is approaching,” he says.
“It has been lagging behind other countries, not just in terms of battery production, but also in terms of EVs… but with the recent announcements, things are going in the right direction.”
