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The capabilities of the West Midlands automotive supply chain were demonstrated to Indian investors at a trade show in Delhi this month as a concept car that could be made almost entirely by Birmingham firms was unveiled.
Dubbed the Birmingham Bolt, the car was intended to showcase the region’s automotive sector at a time when firms are looking to expand their operations through mergers and joint ventures with Indian companies. The car’s design, which relies on locally sourced components, was shown at the Delhi Auto Expo.
Martyn Mangan, Business Birmingham’s transport technologies and manufacturing investment manager, said that India was a top target for British firms looking to attract investment. He said the expansion plans of OEMs would entail growth in the automotive supply chain in the West Midlands, which would require finance.
“I’m not saying there are holes in the automotive supply chain but all the major vehicle manufacturers have expansion plans. They all want to expand their output and the supply chain needs to expand with them,” said Mangan.
“Suppliers can either finance that themselves or they can go into joint ventures with Indian companies, for example.”
Mangan said that India, China and the US were the top countries from which Britain’s second city was hoping to attract investment. “India is a very good, rich source of inward investment for us. At the moment it is India, China and the US where we should be engaged – and are actively engaged,” he said.
Neil Rami, chief executive of Marketing Birmingham, said: “The message we’re sharing with investors in Delhi is that two thirds of all UK automotive R&D is conducted in the greater Birmingham area and global vehicle manufacturers such as Jaguar Land Rover, Toyota and BMW source over £4 billion of components locally.”
Mangan added: “This show is helping to raise the profile of Birmingham and why you should pick us as a favoured location for Indian investors.”
He said the automotive industry was growing after the dark days in the recession, when the sector suffered greatly. Although the growth was encouraging, it was important to remember that the industry was bouncing back from very low depths, said Mangan.
Skills were a very important issue for the industry, he said, with thousands of engineers needed to back the expansion plans of manufacturers such as Jaguar Land Rover. Access to finance also remained a problem, he said.
“Our primary aim is to make sure that we follow-up with a sound business case the companies that show an interest in investing, making Birmingham the number-
one target.
“And, in the long run, that they stay here,” said Mangan.
Companies from the local supply chain capable of taking the Birmingham Bolt from concept to reality include:
Brakes and safety equipment
Alcon
Caparo
Exhausts
Caparo
Unipart
Internal trim
Faurecia
Lear Corporation
Nippon Industries
External trim
Barkley Plastics
International Automotive
Components Group
Plastic Omnium
Tyres and wheels
Goodyear
Rimstock
Drivetrain
Ricardo
ZF
Glass
Pilkington
Body-in-white
Stadco
Sertec
ThyssenKrupp
Unipres
Engine components
GKN
Shakespeare Forgings
Research and development
Aston University
Birmingham City University