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.
In the meantime, its latest electric models - including the new Cooper and Countryman - are being produced in China as part of a deal struck with Far East giant, Great Wall Motor.
But due to 'multiple uncertainties facing the automotive industry', the BMW Group said it is now rethinking the plan to bring EV production back to Britain next year.
Mini has said the sizable redevelopment and upgrade of its Cowley factory in Oxford was underway 'to make the plant future ready' but has told the UK government it will be reviewing the timeline for assembly, 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 Plant Oxford would help secure jobs in the area and at a body-pressing facility in Swindon, the latter having already seen a loss of 3,500 automotive roles when Honda closed its factory in the Wiltshire town in 2021.
BMW's decision to delay the reintroduction of electric vehicles at the Oxford BMW factory - where petrol Minis are currently made - could also 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 the UK's binding targets for electric vehicle sales for the closure of its van plant in Luton, which will see production scaled back from April and cease entirely June, putting some 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.
Motor industry executives have widely called on Labour to show support for the sector by including tax breaks on EVs 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'.
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.'
Dr Andy Palmer, former chief operating officer at Nissan and chief exec at Aston Martin and now a pivotal figure representing EV uptake in the UK, said BMW's pause to Plant Oxford upgrades was ,clearly disappointing' and said the slower-than-expected uptake of EVs in Britain is mirrored across Europe.
'It is partially down to lack of charging infrastructure, softening demand, withdrawal of incentives etc - but it is also down to mixed messages coming from governments about the direction of the auto industry,' he posted on X.
'The UK Government's lack of certainty around the ZEV mandate has caused yet more confusion for OEMS [manufacturers] (and consumers) at a time when they are crying out fir certainty.'
Legacy car makers like BMW and Mini also face stiff competition from Chinese newcomers, 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.
