BMW has announced plans for a major multi-million pound investment this morning in its electric Mini plant in Oxford, securing the long term future of Mini production in the UK.

The German carmaker will transform its existing factory through a £600m investment, creating 4,000 high-quality jobs in the process, after the government agreed to spend £75m in subsidies.

The new plant will produce two new next-generation electric car designs, the Mini Cooper and the Mini Aceman, with a third model being made in Germany.

It marks a major U-turn for BMW, who in October last year confirmed that production of its electric Minis would shift to China, in what was seen as a major blow to the British automotive sector.

Prime Minister Rishi Sunak and Business Secretary Kemi Badenoch hailed the news ahead of the announcement, which takes total investment into the UK automotive sector to £6bn over the last two years.

Rishi Sunak said “BMW’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.”

Kemi Badenoch said “today’s announcement by BMW, coming a week after electric vehicle production started at Stellantis’s site at Ellesmere Port, clearly shows that the government’s plan for the automotive sector is working.”