The UK automotive supply chain could win £3 billion of additional business in the country next year, according to data published by the Department for Business, Innovation and Skills.
Vehicle makers that responded to a survey by the department’s Automotive Council said they planned to spend £23.6 billion in 2012 – an increase of £3 billion on 2011.
Manufacturers plan to spend a third of the total figure, £8.4 billion, on UK suppliers. But they want to buy more in this country, so the survey looked at where UK suppliers could win a bigger share of the business.
Opportunities go across the range of vehicle components from high-value forgings and castings to batteries and interior parts. With the UK producing 2.5 million engines a year, one of the biggest opportunities identified by value was engine parts at £540 million.
Business secretary Vince Cable, co-chair of the Automotive Council, said: “The strength and depth of the supply chain has not been keeping pace with the level of investment we’ve recently seen by vehicle manufacturers in the UK. Growing capacity in the automotive supply chain or bringing it back from overseas is a priority.
“Through the Automotive Council, we are working together to make UK supply chain companies aware of how much more business they could win in the UK.”
Professor Richard Parry-Jones who co-chairs the Automotive Council said: “The 2012 survey shows that, with more low-carbon vehicles coming onto the roads, this is creating new supply chain opportunities. Capability assessments show that UK technology providers are well placed to benefit from this growing demand, particularly in areas such as energy storage and intelligent mobility.”
The Society of Motor Manufacturers and Traders welcomed the survey. Chief executive Paul Everitt said: “The survey demonstrates the value and scale of opportunities available to the UK supply chain.
“For some of the most highly sought-after components, significant supplier capability already exists in the UK, but, for others, continued inward investment is required to ensure that UK suppliers can meet demand and close these valuable sourcing gaps.
“A strong and successful supply base is essential to ensuring the future prosperity of the wider automotive industry.”
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