BMW Group has reportedly paused £600m ($757.9m) investment into the Mini car assembly plant located near Oxford, UK.

The decision comes in response to a decline in demand for electric vehicles (EVs).

The investment, which has been a part of BMW's ownership of Mini since 2000, aimed to upgrade the Cowley plant for electric Mini production.

This move was expected to secure around 4,000 jobs in EV production and was backed by government investment.

BMW was cited by BBC News as saying: “Plant Oxford is at the heart of Mini production, manufacturing and exporting a range of models, which are sought after in the UK and around the world.

“However, given the multiple uncertainties facing the automotive industry, the BMW Group is currently reviewing the timing for reintroducing battery-electric Mini production in Oxford.”

Despite the pause, BMW said that much of the planned investment is still progressing.

Construction is underway to enhance the plant’s infrastructure, including a new "state-of-the-art logistics facility" aimed at modernising operations.

The carmaker confirmed that it had informed the UK government about its decision to review the timeline for electric Mini production, reported the news agency.

As part of this discussion, BMW agreed not to take the previously announced government grant but stated that it remains in dialogue regarding its future plans.

The UK Department for Transport (DfT) is considering "reinstating the 2030 electric vehicle deadline while also protecting jobs", a move supported by many manufacturers who are on track to meet their zero emission vehicle (ZEV) mandate targets, reported BBC News.

The department also mentioned its investment of over £2.3bn to encourage the industry and consumers to transition to electric vehicles.

Last month, BMW Group agreed to create a global EV battery recycling network with South Korea’s SK Ecoplant Company, responding to the increasing global sales of electrified vehicles.