New BMW investment provides hope for the UK automotive sector as auto investments cross £6 billion

The UK automotive sector, especially the electronic vehicle (EV) segment is set to get a massive boost as the UK government announced that BMW will be investing in the Oxford MINI plant.

The Minis have always played a crucial role in Britain's pride and national fervour as seen in the iconic Michael Caine starrer film "Italian Job". The UK Prime Minister highlighted this aspect in a LinkedIn post announcing the latest developments.

This comes at a time when BMW declared it would move electric Mini output from the UK to China last year amidst a car production slump in Britain. Last year the UK's car production hit rock bottom, the lowest since 1956.

With this multi-million pound investment from BMW, the UK automotive sector investments will surpass the £6 billion mark.

On September 11, the Department for Business and Trade announced that BMW has shown confidence in the UK government's plans for the automotive sector of the country by deciding to invest in the 110-year-old Oxford MINI plant.

This will promote the economic growth of the UK as it creates more jobs in the UK automotive sector. Other similar recent investments by major car manufacturers include a £4 billion investment from the Indian company Tata Motors and £1 billion from Nissan and AESC.

While Tata will build a new gigafactory in Britain, Nissan and AESC will create an EV manufacturing hub in Sunderland.

Visiting the Oxford plant UK Business and Trade Secretary Kemi Badenoch hailed this as a success of the UK government's plan for the UK automotive sector which resulted in over £6 billion investments in two years.

The BMW decision came after extensive engagement and support from the UK government which has made way for 4,000 jobs in the UK automotive sector. The new BMW investment will also strengthen the EV supply chain of the UK.

The UK government ascertained that it secured these investments from key players in the automotive manufacturing industry by assuring them of providing the necessary support for new plants' upgradation and installation. This is to ensure that the UK automotive industry is robust to changes in the sector and thrives in future.

Earlier in September, Stellantis, the makers of Citroen, Vauxhall, Peugeot and Fiat declared they are starting EV production following a £100 million investment at their Ellesmere Port site. This is the first global only-EV producing site for the company.

Recently, Ford announced a £380 million investment in EV components production site in Halewood. It's the company's first EV components production site in Europe. This comes at a time when Ford predicted a loss in EV production in its 2023 forecast.

The UK government has a long-term comprehensive agenda of supporting the automotive industry which includes the Automotive Transformation Fund, Advanced Propulsion Centre, Faraday Battery Challenge etc.

As part of its plans for the UK automotive sector, the government awarded over £50 million to 30 cutting-edge manufacturing projects including self-driving cars and rapid-charging motorcycles. The Sunak government is trying to cement the UK's position as one of the best manufacturing locations in the world through such initiatives

The new BMW investment is a "shining example" of the UK automotive sector's capabilities

Speaking about the new BMW investment Prime Minister Rishi Sunak said: that the government secured thousands of jobs and ensured the economic growth of the country by backing the UK's car manufacturing abilities.

Sunak termed the new investment "a shining example" of UK car manufacturing capabilities. According to the Prime Minister, it shows that the UK is still the best place to build future cars.

Meanwhile, Trade Secretary Kemi Badenoch said that the investment announcement by BMW shows that the UK government is on the right track and its automotive sector plans are working.

The trade secretary underlined how the UK government's partnership with the automotive industry helped secure high-quality jobs through investments which will also boost the UK's economic growth.

With the gross investment in the UK automotive sector reaching £6 billion, the future of the car industry looks bright under the current government, said Badenoch.

The Chancellor of the Exchequer Jeremy Hunt spoke of the rich history of the UK automotive manufacturing sector as shown by the vote of confidence from the BMW investment.

The Chancellor further elaborated on the UK automotive sector's role in driving a green transition in the country as Tata and Stellantis started work in the gigafactory and Ellesmere EV production site, respectively.

Jeremy Hunt said the government knows the critical role that the manufacturing sector plays in the UK's economy which is why they are committed to its future. The UK government is working to maintain the competitiveness of the automotive industry along with reducing the business burden, the Chancellor added.