More British components being used in British-made vehicles
BRITISH cars are being made with more British-sourced components as the UK automotive industry’s renaissance continues apace, new research reveals today.
Figures from a new Automotive Council report show that domestic component makers sold 19% more products to UK vehicle producers last year than in 2013.
Today’s report, Growing the Automotive Supply Chain – The Opportunity Ahead, identifies a further £4bn-per-year opportunity for UK automotive suppliers to expand their business in the coming years.
The new figures are an important step in the right direction for the UK automotive supply base. Currently around one third of the components in a UK-built car are domestically sourced, compared to more than 90% in the mid-1970s.
The figure is also much higher in continental Europe where it is not unusual for 50% of domestically-manufactured components to be found in home produced vehicles.
However, vehicle manufacturing in the UK is undergoing a renaissance – British car production has increased by more than 50% since 2009 – and this is creating new opportunities for domestic suppliers.
Business Secretary Vince Cable said: “Our automotive industry has seen a resurgence in recent years and that success means work of some £1bn has returned to the UK. This is testament to the strength and capability of our supply chain manufacturers and will no doubt lead to new jobs and further growth.”
Much of this success can be attributed to UK Trade & Investment’s Automotive Investment Organisation (AIO), which was set up in 2013 to bring more foreign investment into the UK automotive sector. Since its inception, AIO has secured or created more than 10,000 jobs, and delivered more than £768m investment into the UK supply chain.
Joe Greenwell, AIO Chief Executive, said: “This is fantastic news for UK automotive. As well as showing that the UK continues to grow as a serious global automotive destination, it demonstrates the dramatic power of foreign investment, which has helped to revitalise the UK supply chain and secure critical jobs and growth for the UK. We at UKTI will continue to work hard with our partners to address the growing opportunity identified in the report.”
Mike Hawes, Chief Executive of The Society of Motor Manufacturers and Traders (SMMT), added: “A strong domestic supply chain is critical to the success of the UK automotive sector. We want British suppliers to capitalise on the renaissance in UK vehicle manufacturing, and these figures show that positive strides are already being made.
“The work of the Automotive Council is central to this progress, and will continue to be while many component manufacturers still face issues such as access to finance and lack of incentives to innovate.”
