By 2035, the European Union mandates that all new vehicles sold in Europe must be fully electric. Mini is adapting by expanding its electric vehicle lineup, including the Cooper and the new Aceman, although production will remain in China rather than moving to the UK. This decision is influenced by delays in the Oxford factory’s upgrades and reduced demand for electric models. The future for these models is uncertain due to competition and declining sales in the small electric vehicle segment.
Changes in European Car Production by 2035
Starting in 2035, all new vehicles sold in Europe will transition to being fully electric, as mandated by the European Union. This decision has been reaffirmed despite opposition from some car manufacturers and a few member nations, including Germany. Nevertheless, the implementation of this rule is set to proceed as planned.
Shifts in Mini’s Production Strategy
In light of this shift, all automakers will need to adapt, with many already making significant strides well ahead of the deadline. Mini is one such manufacturer, boasting a range of electric vehicles in its lineup, including the Countryman and the Cooper, along with the recently introduced Aceman. Notably, the Cooper and Aceman are also available in high-performance John Cooper Works variants, which were unveiled just a few months ago.
Currently, these electric models are produced in China, specifically at the Zhangjiagang facility. While there were initial plans for these vehicles to be assembled in Europe, particularly at Mini’s Oxford plant in the UK, that notion has recently changed. The Oxford factory is undergoing extensive renovations to focus solely on electric vehicle production.
Although the intention was for the Cooper and Aceman to be manufactured at this site by 2026, reports indicate that this will not happen. According to insights from BMW Blog, which cited information from two independent sources, a communication from Mini to its dealers confirmed that production will remain in China. This decision has significant implications, particularly with regard to ecological incentives in France. The government has opted to eliminate purchasing bonuses for zero-emission vehicles produced in China, a policy affecting models like the Tesla Model 3 and Dacia Spring. Additionally, customs duties for cars manufactured in China are notably higher, with “made in China” Minis facing a tax rate of 31.3% at the European border.
The rationale behind this shift in production strategy appears to be linked to weaker demand for these electric models and delays in electrifying the British facility. Reports suggest that the Oxford factory is not yet equipped to handle large-scale production of the Cooper and Aceman. In contrast, the Countryman is exempt from this situation, as it is already being manufactured in Leipzig, Germany, and benefits from the ecological bonus in France.
As for the future of the Mini Cooper and Aceman, the outlook is uncertain. Spotlight Automotive, Mini’s Chinese partner, is not anticipated to participate in the development of their next generation. This change is largely attributed to a decline in sales within the small electric vehicle segment and intense competition in the Chinese market, which has squeezed profit margins. It remains to be seen whether future iterations of these models will be produced exclusively in Europe, or if they will face an uncertain future altogether. Only time will tell how market dynamics will unfold.