UK Trade & Investment
Automotive Investment Organisation
The UK offers investors a great business case underpinned by growing global
demand, a world leading research and development ecosystem and the most
supportive business environment in Europe for automotive companies.
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AIO and UKTI
•
The AIO is a team based in UK Trade & Investment exclusively focused on supporting the
UK’s automotive sector, both by supporting further investments, and also by helping
companies to export.
•
The AIO takes strategic direction from the Automotive Council. This means it can:
Help investors by making use of all the advantages of being embedded into a
highly effective and functioning civil service framework
Use UKTI’s international network to support companies overseas
…while remaining led by the industry, for the industry.
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The UKTI Global Footprint
UKTI:160 locations in some 100 markets (98% of world GDP)
Investment capability in 72 Posts, with 240 employees,
Working with UK team to connect:
Clients
WHQs, UK branches,
supply chains
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With
Government
UKTI, OGDs, partners
universities, sector bodies,
funding opportunities
AIO Objectives and Targets
•
•
•
Leverage inward investment to deliver long-term and sustainable growth in the UK Automotive
Sector.
By taking direction from the Automotive Council...
• Increasing the amount of inward investment into the automotive supply chain;
• Building and strengthening the Government’s relationships with global headquarters
of vehicle makers;
• Increasing the amount of foreign investment in automotive sector R&D - particularly in
strategic areas;
• Assisting UK based automotive supply chain companies with their exports to the new
markets
Promoting the image of the UK automotive sector among key decision makers in overseas
markets, and promote the investment and trade opportunity
Our key target is 15,000 jobs created or secured by Foreign Direct Investment in the automotive
supply chain over the next three years (this is double the number created or secured between
2010 and 2013).
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What the AIO Can Bring To Your Organisation
Point of contact in
Government and
facilitation of
Government support
Support with
developing
investment
propositions for
overseas HQ
Automotive
Investment
Organisation
Specialist advice
and connections for
customers, partners
and suppliers
Export assistance
for all UK-based
companies
Highlight your
successes and raise
the profile of UK
automotive
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Over the past seven years the UK has emerged as one of the most
globally attractive locations for Automotive investment. The
foundations for this success have been based on these key areas:
1 - Growing Supply Chain Opportunity:
•
The UK is experiencing an unprecedented period of growth In production volumes driven by global demand for UKmanufactured vehicles as well as a domestic market that is the fastest growing in Europe resulting in a unique
supply-chain opportunity.
•
Increasingly UK-based OEMs are looking for supply chain proximity to reduce logistic costs, minimise risk and to
cater for R&D cycles that are growing ever quicker.
2- Strong Domestic and Export Market:
•
UK vehicle production volumes reached 1.6m in 2013, overtaking France in passenger vehicle volumes, and the
domestic market was the strongest in Western Europe with year on year growth of nearly 11%. Over 80% of UKbuilt cars were exported with a value of almost £25bn.
3 - Transformational Research & Development:
•
The UK provides an ecosystem which brings together leading-edge firms, universities, motorsports and funded
projects to develop, commercialise and deliver technological innovations in the Automotive sector.
4 - Supportive Business Environment: The UK boasts one of the most progressive and flexible business environments
which has made us number one in Europe for foreign direct investment.
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1. Growing Supply Chain Opportunity
Domestic Car Market
Percentage Growth in Car Sales
2009 - 2013
20
13.5
10
0
UK
-10
-20
Spain
-22.2
-30
-22.5
-16.2
-24.1
EU
-40
France
-50
Germany
Sweden
-39.6
Italy
UK
France
Germany
Spain
Italy
EU
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Source: ACEA 2014
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1. Growing Supply Chain Opportunity
Vehicle Plant Locations & Output 2013
Land Rover Halewood
Freelander 57,618
Leyland Trucks
Evoque 127,302
Leyland
Leyland Trucks 15,400
Alexander Dennis
Larbert
Trucks 1,980
General Motors
Ellesmere Port
Astra 73,466
Nissan
Sunderland
Leaf 8,424
Note 24,348
New Note 34,553
Juke 147,954
Qashqai 227,110
New Qashqai 9,367
Bentley
Optare
Crewe
Sherburn Continental 9,408
Buses 444 Mulsanne 1,088
Lotus
Hethel
1,369
Geely (LondonTaxi Co)
Coventry
SAIC MG Motors
Birmingham
Toyota
Burnaston
Auris 142,751
Avensis 36,482
Jaguar
Castle Bromwich
F Type 9,466 XJ 18,917
XF 47,341
XK 2,842
Land Rover
Solihull
Dennis Eagle
Defender 8,362
Warwick
Discovery 42,907
Trucks
1,024
Range Rover 104,120
BMW Mini
Oxford
Mini – 174,997
Aston Martin
Gaydon
3,828
McLaren
Woking
1,406
Others
Morgan – 542
Caterham – 374
Rolls Royce
Goodwood
3,265
Honda
Swindon
Jazz 25,000 General Motors
Luton
Civic 41,840
Vivaro
43,183
CRV 71,972
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Source: SMMT 2014
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1. Growing Supply Chain Opportunity
Engine Production Volumes
Nissan
Sunderland
266,130
Toyota
Deeside
200,418
Bentley
Crewe
10,496
Ford
Dagenham
787,398
BMW
Hams Hall
408,060
Bentley
W12
Ford
Bridgend
741,073
Honda
Swindon
139,741
Jaguar Land Rover
i54
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Source: SMMT 2014
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1. Growing Supply Chain Opportunity
Projected Production Growth
2.50
2018
Vehicle Production in Millions
Projection
2.00
2.24m
1.50
Production Volume
Projected Volume
1.00
0.50
0.00
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
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Source: SMMT 2014
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1. Growing Supply Chain Opportunity
The £3bn Supply Chain Opportunity
Component
Opportunity value (£m)
Component
Opportunity value (£m)
Engine castings
370
12V lead/acid battery
60
Steering systems
220
Cast aluminium sub-frames
60
Trim
170
Brake callipers
50
Harnesses
160
Drive shafts & CVJs
50
Seating
150
Engine accessories (alternator, starter, aircon)
50
Tyres
140
Fuel tanks
50
Alloy wheels
140
HVAC assembly
50
Lighting
130
Chassis Suspension Module
40
Electronics (ECU, ESP, ABS, PDC)
110
Misc assemblies (pedals, mirrors, roof rails,
grilles etc)
40
Engine forgings
170
Shock absorbers
40
External plastics (bumpers, trim)
100
Heat shields
30
Entertainment/Navigation
90
Oil pans
30
Bearings
80
Small pressings
30
Instrument clusters
80
Transmission components
30
Glass
70
Large/medium pressings
30
Hinges
70
Steel wheels
20
Hot Stampings
70
Carpets
20
Welded assemblies
70
Suspension springs
10
Switchgear
10
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1. Growing Supply Chain Opportunity
Over £10bn invested since 2012
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Source: SMMT 2014
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2 - Transformational Research & Development
Global Centre of R&D Capability & Motorsport: The UK is home to 4 of the global top
10 Universities, many of which working in collaboration with the Automotive sector
to develop and deliver the technologies of the future. The UK is also home to 8 out of
the 11 Formula 1 teams.
Leading Automotive R&D Facilities: The UK is home to world class facilities and is the
ideal location for automotive R&D supported by investment From OEMs, innovative
suppliers and funded Government programmes.
World Leader in Low Carbon Technologies: With world leaders in engine technology
including, Ford, Nissan and Jaguar Land Rover working in collaboration with suppliers
and supported by large-scale Government funding, the UK has emerged as a leader in
the development and commercialisation of low-carbon technologies.
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2. Transformational Research & Development
UK Capabilities
Advanced Engine Technologies and Systems
The UK is home to leading global engine manufacturers using the country’s technical capabilities
to design advanced engines across a diverse range of sectors and engine technologies.
Advanced Manufacturing
Transformational breakthroughs are being made across a number of manufacturing fields,
underpinned by the UK’s dominance in areas such as composites, rapid production techniques
and advanced joining.
Aerodynamics
Connect with the UK’s extensive aerodynamic expertise from its world-leading aerospace and
motorsports industries to dramatically reduce fuel consumption in mass-market applications.
Design Creativity
A design-led automotive sector, serviced by globally renowned centres of excellence and the
world’s leading car designers.
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2. Transformational Research & Development
UK Capabilities (continued)
Electric Machines and Power Electronics
Global vehicle makers are developing exciting future electric-vehicle technologies in the UK, supported
by expertise across automotive, rail and power-generation engineering.
Energy Recovery and Storage
Collaborate with the UK’s global pioneers in vehicle energy recovery.
Intelligent Mobility / Intelligent Transport systems
Companies are recognising that the UK’s strengths in communications, electronics, big data and test
infrastructure to develop Intelligent Mobility solutions.
Lightweight Design, Materials and Components
The light-weighting expertise grounded in the world’s largest Formula 1 industry and second-largest
aerospace sector is key to delivering the transformational weight reduction required for mass-market
vehicles of the future.
Systems Integration and Homologation
The UK has world-class expertise and experience in the homologation of vehicles for European
markets.
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2. Transformational Research & Development
Motorsports
The UK is the global centre of the
Formula 1 industry. The technological
innovations found in Formula 1
underpin the nine areas of R&D
capability identified as the major
strengths of the United Kingdom
The UK is home to eight of
the 11 Formula 1 teams.
Overall there are 4,500 firms
in the UK motorsport sector.
Technological innovations
generated though F1 have a
trickle down effect into the
wider automotive sectors as
well as innovative
applications in other sectors
such as aerospace or
pharmaceuticals
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2. Transformational Research & Development
Motorsport Valley
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Source: MIA 2014
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2. Transformational Research & Development
Motorsport Suppliers
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Source: MIA 2014
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Examples of technology transfer from F1 to commercial road
usage
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2. Transformational Research & Development
R&D Ecosystem
The combination of UK expertise and its
forward-thinking approach gives the
country a unique strength in the
development of key automotive
technologies. The UK’s strong
manufacturing and supply chain
ecosystem consists of a broad range of
innovators that covers the whole
development life cycle from initial
concept through to commercial launch.
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2. Transformational Research & Development
World Class Facilities
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2. Transformational Research & Development
Centres of Excellence – High Value Manufacturing Catapults
Advanced Forming Research Centre,
Glasgow
Centre for Process Innovation,
Wilton
Advanced Manufacturing Research Centre,
Sheffield
The Nuclear Advanced Manufacturing
Research Centre,
Sheffield
The Manufacturing Technology Centre,
Coventry
The National Composite Centre,
Bristol
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The Warwick Manufacturing Group,
Coventry
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2. Transformational Research & Development
Low Carbon Technologies
Ambitious EU & UK emissions targets are increasing the demand for
ultra low emission vehicles , including hybrids and electric vehicles
Regulatory CO2 targets are in place
around the world, with the EU targeting a
fleet average for new cars of 95g of CO2
per kilometre by 2021.
The UK Government’s vision is that by
2050 almost every car and van in the UK
will be an ultra low emission vehicle
(ULEV), with the UK automotive industry
at the forefront of their design,
development, and adoption.
The UK has a long-term, stable and
comprehensive policy framework to
support the transition to ULEVs, backed
by significant funding commitment of
£400m to 2015 and a further £500m
from 2015-2020:
• Funding to stimulate demand for ultra
low emission cars and vans
• Support for ultra low emission taxis
and buses
• Support for the development of
infrastructure
• Funding for research & development
The UK Government and automotive
industry are investing heavily to
make the UK a world leader in
research and development for
electric and hybrid vehicles. They
have committed £1bn to the new
Advanced Propulsion Centre to
support the development of
next-generation propulsion
technologies from research through
to mass-manufacture.
Similarly, The Proving Factory is
helping companies in hybrid power
to commercialise their technologies.
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3 - Supportive Business Environment
Funding & Support at National Regional and Local level: With innovative programmes
at national level including the Advanced Propulsion Centre and the Regional Growth
Fund as well as local funding though Local Enterprise Partnerships, there is very strong
public support for UK-development initiatives
Strong Relationship Between Government And Industry : Through the SMMT,
Automotive Council and the Automotive Investment Organisation, the government
and industry are proactively working together to attract investment, boost trade and
implement policies that support the continued growth of the UK Automotive sector.
Competitive incentives For businesses: The UK has one of the most competitive
corporation tax rates in the EU, low labour costs, flexible legislation, a stable currency
and developed infrastructure.
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3. Supportive Business Environment
A Great Place to do Business
Excellent labour and
Industrial relations
The most competitive
tax regime
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Source: KPMG 2014
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3. Supportive Business Environment
Competitive Incentives & Key Initiatives
Advanced Propulsion Centre (APC): As part of the Automotive Strategy, Government and industry are jointly investing
over £1bn over the next 10 years in the APC
Regional Growth Fund (RGF): Over £230m has been allocated to Automotive companies to date.
Innovate UK: A competitive fund supporting investments in technologically driven transport projects – Over £310m
has been allocated to Automotive companies to date.
Advanced Manufacturing and Supply Chain Initiative (AMSCI): Funding of £120m for R&D, skills training, and capital
investment for supply chain companies.
Ultra Low Emission Vehicles (ULEV): The Government has committed £500m to support the development and uptake
of ULEVs all the way out to 2020.
Employer Ownership Funding: Up to 50% contribution to training costs for transferrable skills up to a value of £2m.
R&D Tax credits: R&D Tax Credits is a scheme allowing companies to reclaim a significant percentage of their
development costs back in cash whether you are profitable or pre-revenue.
High Value Manufacturing Catapult (HVM): A £200m scheme providing UK business with a gateway to access the best
manufacturing talent and facilities in the country.
The Patent Box: provides an effective corporation tax rate of 10% on profits from patents registered in the UK or
European patent offices.
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