The UK motor industry has urged the government to encourage manufacturing, promote engineering excellence in key emerging markets and showcase the country as an attractive business location for international investors.
The plea came from Society of Motor Manufacturers and Traders (SMMT) chief executive Paul Everitt as he gave evidence to the House of Commons Business, Innovation and Skills Select Committee.
The committee is looking at the role of trade and investment in rebalancing the economy ahead of a forthcoming trade White Paper.
Mr Everitt told MPs on the committee: “The motor industry is one of the UK’s most successful exporters. High-value vehicles, engines and services are sold to markets around the world, with particular success in China, India and Russia. Future success will depend on increasing investment in UK-based skills, R&D and capital equipment. Government needs to ensure sustained promotion of UK engineering excellence in key emerging markets and incentives to encourage more investment into UK manufacturing capability.”
He also stressed the importance of the role of the Department for Business, Innovation and Skills (BIS) in supporting exports and investment through discussions with European Commission officials. BIS should use automotive as an example of an important sector of the economy, he said, where growth potential through exports and investment in manufacturing is communicated as a key UK industrial strength.
The work of UK Trade and Investment (UKTI) was also outlined as crucial to supporting the expansion of business overseas and promoting the UK as a leading location to invest. SMMT supports UKTI activities that help SMEs develop market opportunities, particularly through the Overseas Market Introduction Service (OMIS), Export Market Research Study (EMRS) and the Tradeshow Access Program (TAP).
More than 700,000 jobs are dependent on the UK automotive industry, which has an annual turnover of £40 billion. The industry accounts for nine per cent of total UK exports and invests £1bn a year in R&D.
