Higher UK content will also help Britain’s car industry meet “rules of origin” thresholds required to qualify for lower trade tariffs if Britain cannot negotiate a deal with the EU as it exits the trading bloc.
Business Secretary Greg Clark said while the report “highlighted the sector’s good progress, there are many more opportunities for us to exploit”, adding the industrial strategy “will build on the automotive industry’s strengths”.
Mike Hawes, chief executive of Society of Motor Manufacturers and Traders, added: “The domestic supply chain is the backbone of UK automotive and its health is crucial to the success of the whole sector. While it is good news that British cars are becoming more British and reshoring efforts are enjoying success, the process takes considerable time.
“To grow our supply chain further, the long term competitiveness of the UK must be maintained. Collaboration with government has been an undoubted factor in the recent success and we hope to continue this approach to ensure the economic and trading conditions we currently enjoy are maintained.”