Vauxhall Vivaro production lineCars built in Britain are now also using more British-built components in £1 billion boost to UK industry.

Component suppliers based in the UK enjoyed a 19 per cent sales boost to domestic makers in 2014, something the Automotive Council says is “an important step in the right direction”.

It means £1 billion of components work has returned to the UK, which business secretary Vince Cable says is “testament to the strength and capability of our supply chain manufacturers and will no doubt lead to new jobs and further growth.

“This has not happened by accident but is the result of government and industry working together through the Automotive Council to strengthen our supply chain – meaning an increasing number of parts made in this country are contained in vehicles rolling off UK production lines.”

From 90% to 30% British

The industry still has a long way to go before it reaches the British content highs of the 1970s, though: back then, 90 per cent of the parts used to build a car were sourced here. Despite last year’s increase, the figure is down to around 30 per cent today.

But a 50 per cent rise in UK car production since 2009 is creating the right opportunities for home-based suppliers to improve this: the Automotive Council reveals that some suppliers have even been saved from going out of business thanks to the improving fortunes of the UK car industry.

Many are now enjoying rapid growth.

The Automotive Council highlights the launch of Vauxhall’s new Luton-built Vivaro. The old model had just 16 per cent British-sourced parts; the new one has 4 in 10 British-sourced components, which itself is a £600 million boost to UK PLC.