Cars from India, China pose threat to UK auto industry

The Trade and Industry Select Committee has warned that the UK's remaining home-owned car plants are labouring under a growing threat of closure in the face of intensifying competition, reports Nabanita Sircar.

The British car industry could soon suffer at the hands of countries like India and China. It is believed significant car production could shift to low-cost countries.

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The Trade and Industry Select Committee has warned that the UK's remaining home-owned car plants are labouring under a growing threat of closure in the face of intensifying competition.

Rover, one of Britain's indigenous manufacturer, despite its tie-ups with Tata Corporation of India and ongoing rumours of collaboration with Chinese manufacturers, have had stagnated sales.

The committee's report suggested that a 'persistent' shortage of basic skills had to be solved by the Government to ensure the UK remained an attractive location for manufacturing. The report added: "Car companies work on an international basis and have been investing heavily in the accession countries for some time so there seems little prospect of an immediate shock to the UK vehicle production."