Suppliers to the UK's car makers will invest £225 million over the next three years in a big boost to the UK's manufacturing base.
Research by the Society of Motor Manufacturers and Traders (SMMT) of 100 members of the UK car making supply chain showed an overwhelming majority of companies feel confident in the health of the industry and optimistic about its prospects for growth over the next few years.
Firms are set to invest in physical equipment, machinery, research and development along with expanding into new markets and training more staff. Three-quarters were positive about the prospects for their company over the next three years and 83 per cent said the sector was in better knick that it was five years ago.
"Britain's car industry is booming [and] exporting more than ever," said Mike Hawes, chief executive of the SMMT.
Figures out yesterday showed new car registrations in May climbed by 2.5 per cent to more than 200,000 vehicles - the highest number for the month since 2002. However, the pace of growth appears to be slowing after five solid years of expansion.
Analysts said that the EU referendum could be delaying the purchase of big-ticket items by both households and firms as business vehicle registrations dropped by 20 per cent.