It is these technologies, fuelled by R&D and investment that are expected to drive growth to new and developing export markets such as China, India and Russia. Automotive companies based in the UK have already committed billions of pounds to R&D, production facilities, new models and infrastructure. In addition, there is an industry-wide desire to source more materials locally, particularly components in high technology, low carbon and electric vehicle areas.

Jamie Houghton, Transport Partner at PwC, added, "The low carbon vehicle sector is making significant progress in charging infrastructure, battery and vehicle development. Along with the clear resounding message from government that they are supportive of this area, the event also highlighted potential areas for investment in UK organisations for what is an expanding global market. Government has made its emissions targets very clear and is stimulating demand through sustainability funding, the onus is on us all to deliver."

Earlier this year SMMT published a report titled Invest Now that set out the business case for investing in UK automotive and summarised the strength of UK automotive. In the report, the UK was shown to be ranked in the number one position in Business Monitor’s rankings of ‘Business Environment’, while it was considered that the shift to low carbon motoring placed the UK at the centre of global developments in R&D and engineering of these new technologies.

Recent industry and government collaboration through the Automotive Council, has shaped policy to rebalance the economy away from services and towards manufacturing. Specific policies that promote stability, growth, simplified regulation, investment, skills and incentivising innovation are designed to boost existing manufacturing while attracting inward investment. These measures, coupled with schemes to enhance availability of finance and credit are crucial to reinforce the commitment of existing UK-based operations, while broadening the appeal of the UK and the automotive industry to new suppliers and investors.

UK automotive represents around 3% of total GDP, accounts for two thirds of total manufacturing turnover and is the country’s largest sector in terms of exports, generating around £24 billion in revenue. Typically achieving a turnover of around £50bn, employing over 700,000 people and producing an annual net value-added to the economy in excess of £10bn, the significance of the sector and its appeal to international investors is plain to see.