Growth of 3% compared with 2015 correlates with £3.7 billion more turnover in the last six years
The percentage of parts in UK cars from domestic suppliers has grown to a new peak, at 44% compared with 41% in 2015.
The Automotive Council has uncovered the new figures, which equate to a growth in the segment’s turnover of £3.7 billion since 2011, an increase of 41%.
The Council pegs the increase as the outcome of a long-term trend in the car industry, figureheads of which have expressed profound concern since the UK’s vote to leave the European Union (EU).
This growth is broken down into four parts, with exhausts, large and small pressings and plastics growing since the study’s last dip into the industry two years ago. A 60% increase in local production output is mooted.
The council also claims that a domestic parts industry boosts profitability and productivity in UK-based car plants, and will help to safeguard the UK’s car industry from strangled investment from manufacturers as Brexit negotiations take hold.
Boss of the Society of Motor Manufacturers & Traders (SMMT), Mike Hawes, said: “The domestic supply chain is the backbone of UK Automotive and its health is crucial to the success of the whole sector. While it is good news that British cars are becoming more British and re-shoring efforts are enjoying success, the process takes considerable time. To grow our supply chain further, the long-term competitiveness of the UK must be maintained.”