Supply chains for the UK automotive sector are set to grow rapidly over the next few years.

This is according to professional services company KPMG, which has produced its latest survey. It found that although car productions was was flat over the last month, the addition of new models such as the Nissan Qashqai, BMW Mini and Range Rover Sport will bode well for the British manufacturing industry. This will have a positive knock-on effect on the companies that supply them

The report stated increased confidence among firms such as Lear, Borg Warner and Nifco has seen them invest heavily over recent months. This further fuels expectations that parts sourced from UK companies will rise above 40 per cent by 2017.

John Leech, KPMG's UK head of automotive, commented: "We are seeing a substantial upsurge of interest by potential investors in the UK automotive supply chain the like of which we haven't seen for several decades."

Meanwhile, the Society of Motor Manufacturers and Traders estimated that vehicle production would grow to over two million in 2017. This is likely to further increase the involvement of British supply chain companies, with KPMG expecting employment within the sector to rise by tens of thousands.