The amount of value sourced by UK car manufacturers sourced from UK tier-1 suppliers has increased from 36 per cent in 2011, to 41 per cent in 2015 – growth of some 14 per cent, according to a report from the Automotive Council UK.
The report, entitled, “Growing the Automotive Supply Chain – Local Vehicle Content Analysis”, also highlights the fact that absolute passenger car production in the UK also grew by 16 per cent during that period.
The report also found that there had been an increase in annualised sales of UK parts to UK car manufacturers from £6.3 billion in 2011, to a figure currently approaching £9.5 billion annually.
“It is also worth noting that the growth in domestic parts was higher than that of exported parts, highlighting the fact that the growth in parts production was not export-driven, corroborating the survey’s main finding of a significant increase in local content.”
However, the report says anecdotal evidence suggests that countries like Germany and France achieve a local sourcing content of an estimated 60 per cent – 50 per cent higher that the UK is currently achieving.
“This level is regarded as the upper bound of the maximum local content that is realistically achievable,” the report said.