UK supply chain sales to local customers increased by 20% in 2014 compared to the previous year, an Automotive Council UK report has revealed.
According to the report, the rise in sales shows that the industry is re-shoring parts supply from overseas.
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The latest estimates indicated that at least £1bn worth of parts supply has been re-shored.
New investment and an increase in vehicle production were cited as ways to accelerate the re-shoring of the UK supply chain in the near future.
The Automotive Council UK expects the annual vehicle output to reach 2m vehicles over the next few years.
In 2014, there were 1.6m vehicles and 2.5 million engines produced in the UK, of which over 80% were exported.
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By GlobalDataThe total automotive export earnings in 2014 for vehicles, parts and related products were nearly £35bn, accounting for 7% of UK’s entire export earnings.
However the sector continued to record a trade deficit, with nearly £48bn worth of vehicles and parts imported last year.
"UK is the second largest producer of premium cars in the world, with over 40 companies making vehicles here, at some of the most productive car plants in the world. Output is rising, productivity is rising, employment is rising and there is a realistic expectation that annual UK vehicle output will reach 2 million vehicles over the coming years," said Secretary of State at the department for business, innovation & skills and Automotive Council’s co-chair Vince Cable.
