OXFORD (dpa-AFX) - A "Gigafactory" from Tata, an e-car plant from Stellantis - and now two new e-models from Mini: The automotive location of Great Britain is putting itself in the fast lane. With massive state aid and strict regulations for manufacturers, Prime Minister Rishi Sunak's government is pushing ahead with the transition to electromobility.

On paper, the plan is working. Whereas Mini had recently threatened to shift almost all of its e-production to China, the BMW subsidiary announced on Monday that it would manufacture two new models in Oxford from 2026. To this end, the Munich-based group is investing the equivalent of 700 million euros, thereby also securing the 4,000 jobs at its Oxford and Swindon plants. "From 2030, the production volume will be exclusively electric," BMW announced.

Mini, with its Union Jack-themed taillights, is "a British classic," Premier Sunak pointed out. "Mini has always been aware of its history - Oxford is and will remain the heart of the brand," said brand boss Stefanie Wurst. The plant celebrates its 110th birthday in 2023.

But there are financial reasons for the commitment to the home location. For example, the British government is investing an estimated 75 million pounds in the conversion. The billion-dollar "Gigafactory" of the Tata Group, to which the British brand Jaguar Land Rover belongs, is even demanding several hundred million pounds from London.

Demand for e-cars in the UK is high. "The electromobile trend reversal is becoming increasingly visible," commented the federally owned German foreign trade company Germany Trade and Invest (GTAI) in an unpublished study obtained by Deutsche Presse-Agentur. According to the study, demand for fully electric vehicles rose 38 percent in the first seven months of this year, while diesel car registrations fell 17 percent year-on-year.

But the rising number of e-cars on U.K. roads isn't just due to increasing demand. "The government is also increasing pressure on manufacturers, mainly through two measures," GTAI points out. For example, from 2030 onwards, the sale of new internal combustion vehicles is banned, and from 2035 onwards, no new hybrid vehicles may be offered either. Only recently, Prime Minister Sunak confirmed that he would stick to the plan - despite calls for relaxation from his own conservative camp.

The risk for manufacturers is even more acute in the case of a second planned requirement. As early as 2024, they are to achieve at least 22 percent of their sales with electric vehicles. The quota is then to be increased annually - up to 100 percent in 2035. Failure to meet this target could result in heavy penalties of around 17,250 euros per vehicle.

But among the ten most popular brands from the previous year 2022, none has yet reached the target, GTAI points out. "BMW is the closest with a 19.5 percent share, followed by Hyundai (17.9 percent) and Mercedes (17.7 percent)." These manufacturers stand a good chance of meeting the Zero Emission Vehicle Mandate (ZEV mandate), given the rapidly growing demand for electric cars and significantly declining internal combustion registrations, he said. However, the mandate has not yet been decided, and experts expect automakers to lobby for a more generous timeline.

It's not the only race against time. The tightening of the so-called rules of origin is also weighing on the industry. London and Brussels had agreed that from 2024, at least 45 percent of the value of electric cars must come from the United Kingdom or the EU in order for the vehicles to continue to be exported duty-free. "Without their own gigafactories, British manufacturers would therefore only be able to export their electric cars to the EU duty-free if they source the batteries from the Union," the GTAI study said. "This would be an extreme competitive disadvantage for the island."

That's because the U.K. is primarily a manufacturing base, with about 80 percent of the cars it produces exported, the majority to the EU. The German industry association VDA is therefore also calling for the current rules of origin to be extended once again./bvi/DP/nas