World news story

Britain’s £4 billion car part kitty fuels growth opportunities for Indian businesses

British auto manufacturers are in the market for new car part suppliers to service the growing demand for UK automobiles.

UK pavilion at Auto Expo 2016 New Delhi

The UK is now the fastest growing automotive manufacturer in Europe with more than 1.6 million vehicles rolling off the production line in 2015, the highest in over a decade.

Speaking today at the unveiling of the UK’s Society of Motor Manufacturers and Traders Association (SMMT) and the UK Trade and Investment (UKTI) pavilion at the Auto Expo 2016 in New Delhi, the United Kingdom’s Acting High Commissioner to India, Dr Alexander Evans, said that Britain had cemented itself as the fastest growing automotive manufacturer in Europe and that meant plenty of growth potential for inward investors.

Dr Evans said:

The UK is uniquely placed to return itself to being a global leader in car manufacturing. We are accelerating that position with the quality of our products, and our research and development in the sector.

Indian companies and manufacturers are critical to our journey. Take for example Jaguar Land Rover, owned by Tata, which recently became the largest automotive manufacturer in Britain. Such partnerships celebrate the essence of GREAT for Collaboration, an exciting campaign launched by our two Prime Ministers to inspire new partnerships between the UK and India, and encourage greater awareness of the scale of the UK’s commitment to India.

He said:

We will continue to boost automotive production in the UK. That means we are looking for more companies to partner with us to satisfy the demand for our cars, and India is well placed to take advantage of this growth.

Nine British automotive manufacturers are participating in this year’s Auto Expo, the biggest delegation to India of all time.

Tamzen Isacsson, Society of Motor Manufacturers and Traders Association (SMMT), said the delegation was a collection of some of Britain’s most cutting-edge supply chain and aftermarket companies.

Ms Isacsson said:

SMMT is proud to be hosting a delegation for the sixth edition in a row. The Indian and UK automotive sectors have a lot in common – putting engineering creativity, ingenuity and innovation at the forefront of everything we do,

With exports of British-built cars to India up three-fold since 2010, and demand increasing in line with the country’s growing economic prosperity, we expect our already close trading relationship to strengthen further right across the industry spectrum as we work together to take advantage of mutually beneficial investment opportunities.

Dr Alexander Evans joined Tamzen Isacsson, at an official photocall today announcing a number of business partnership opportunities between the UK and India, as well as officially opening the UK pavilion at the Auto Expo event.

UKTI stand at Auto Expo is located at: UK pavilion in Hall 18, Stand 29, Pragati Maidan, New Delhi, February 4-7.

For more information on the advanced propulsion centre fund or understanding how to partner or establish a business in the UK, contact Sandip Chaudhuri.

Interested parties can also visit and meet UKTI investment advisors at Auto Expo who can help put them on the path to international growth.

More information about the UKTI event at the Auto Expo or for tickets and photos

For images from today’s photocall or to arrange an interview with Dr Alexander Evans or Tamzen Isaacson please contact: Samantha Yeung, MHP communications and Jagori Dhar

Further information:

GREAT for Collaboration is an ambitious and exciting new campaign to showcase India-UK business collaboration. The campaign, launched by Prime Minister Modi and Prime Minister Cameron, will inspire new partnerships and encourage greater awareness of the scale of the UK’s commitment to India. The overall objective is to increase business between the two countries. The campaign showcases and promotes collaborations of mutual benefit to India and the UK across a range of sectors, such as energy, healthcare, advanced manufacturing, financial services and infrastructure.

GREAT for Collaboration video

Find out why the UK is the most attractive overseas business destination   ###Media fact sheet

Back to the future

UK Regains position as world leader in automotive industry

  • the UK is a leading centre for the automotive industry. In 2015 nearly 1.6 million vehicles rolled off the production line (the highest in a decade), and in turnover of the sector likely to exceed a record £68 billion, with the average value of UK-made cars doubling since 2009. The UK is the third largest car producer in Europe.

  • part of the success of the industry is due to the quality of the products but part is also due to business efficiency. The UK automotive sector is now clearly the most productive in Europe, 12.8% ahead of closest rival Germany, and nearly double the productivity achieved in France.

  • the UK is a growing force in automotive R&D, which is paving the way for further production growth over the next 10 years. Alongside 4 of the top 6 universities in the world, Jaguar Land Rover, Ford and Nissan all have R&D centres in the UK. The UK automotive industry is leading in the development of low carbon vehicle technologies.

  • the UK is also the leading manufacturer of electric vehicles in Europe (thanks to the Nissan factory in Sunderland), and there is a growing ecosystem in the North East for batteries and associated technology. Crewe in the North West is now the global Centre of Excellence for 12 cylinder engines in the VW Group. This reflects the leading role the UK plays in engine development, thanks to the £1 billion, 10 year investment in low carbon propulsion via the advanced propulsion centre.

  • supply chain - rapid expansion of the UK automotive sector has driven an unprecedented demand for components. In the two years to 2015 sales from UK suppliers to UK OEMs grew by £1 billion, with 19% growth in 2014 alone. UK vehicle manufacturers have identified an additional £4bn of opportunity for Tier 1 component production and a further £2 billion worth of supply chain opportunities for Tier 2 suppliers and below.

  • the UK leads Europe in Intelligent Mobility and is well-placed to lead the world. The first multiple trials on public roads began in February 2015 and the Centre for Connected and Autonomous Vehicles (C-CAV) was launched to support companies to commercialise intelligent solutions. The launch of the UK’s world-leading code of practice now means the UK is one of the most supportive and open countries for developing and testing intelligent vehicles.

  • motorsport - the UK is the global leader in motorsport, the most R&D intensive part of automotive. 7/10 of the current F1 teams are based in the UK, alongside over 4,500 companies involved in the motorsport sector. This offers unrivalled access to cutting-edge expertise; expanding technology flow into the mainstream automotive sector.

  • exports – with growing demand for UK Automotive products around the world, the UK is an ideal location to export from with direct access to the EU and over 100 global markets. In 2015 a record number of cars (77.3% of total production) were exported, with over 1.2 million units leaving the UK, up 2.7% on 2014. EU demand continued to grow, up by 11.3%.

Stuart Adam, Head, Press and Communications
British High Commission, Chanakyapuri, New Delhi 110021
Tel: 24192100; Fax: 24192411

Mail to: Jagori Dhar

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Published 4 February 2016