Dr Milan Nedeljković and The RT Hon Kemi Badenoch MP

BMW board member Milan Nedeljković (left) with business and trade secretary Kemi Badenoch

A new generation of electric Minis will be produced in the UK after BMW announced an investment of more than £600m in its factories at Oxford and Swindon.

“With this new investment we will develop the Oxford plant for production of the new generation of electric Minis and set the path for purely electric car manufacturing in the future,” said Milan Nedeljković, member of the BMW board of management.

The Oxford plant is gearing-up to build two new all-electric Mini models from 2026, the 3-door Mini Cooper and the compact crossover Mini Aceman. By 2030 production will be exclusively electric.

The development has been supported by the UK government and prime minister Rishi Sunak said: “BMW Group’s investment is another shining example of how the UK is the best place to build cars of the future. By backing our car manufacturing industry, we are securing thousands of jobs and growing our economy right across the country.”

Business and trade secretary Kemi Badenoch said: “This decision is a big vote of confidence in the UK economy and the work of this government to ensure the continued strength of our world-leading automotive sector. We are proud to be able to support BMW Group’s investment, which will secure high-quality jobs, strengthen our supply chains, and boost Britain’s economic growth.”

The Oxford plant has been producing the current Mini Electric since 2019, where it is fully integrated into the production line with the conventional internal combustion engine (ICE) models.

Stefanie Wurst, head of the Mini brand, said: “Mini has always been aware of its history – Oxford is and remains the heart of the brand. I am delighted that the two new, fully electric Mini models – the Mini Cooper and Mini Aceman – are also being produced in Oxford, thereby confirming our path to a fully electric future. The continuing high demand for our emission-free vehicles shows the openness of the global Mini community to electromobility, which we will be able to serve optimally in the future, also thanks to Oxford.”

The factory is scheduled to reach a production capacity of around 200,000 cars per year in the medium term, with ICE and battery electric vehicles (BEVs) initially being built on the same production line. From 2030, the Oxford Plant will produce all-electric Mini models exclusively.

“I am proud to say that our Oxford and Swindon plants will play a central role in the BMW Group’s transition to electromobility. We are determined to continue the historic success story of our plants, producing the most loved British car brand,” said Markus Grüneisl, CEO of plants Oxford and Swindon.

Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), said: “BMW’s landmark announcement is yet another vote of confidence in UK automotive manufacturing. Not only does it secure the long-term future of the home of one of the world’s most iconic brands, it also demonstrates once again our capabilities in electric vehicle production.”