The survey, carried out in conjunction with the Institute of Mechanical Engineers (IMechE), looked at the issues that mattered most to the IMechE's automotive industry members. It found that 34% are hopeful of an increase in sales up to 5% and almost half looking at very healthy growth of between 5% and 20%. This opportunity is overwhelmingly expected to come from export markets with 86% looking to foreign shores, whilst only 14% were focusing on the domestic market.
This optimistic outlook continues the strong momentum of last year which saw new car registrations rocket to just below 2.5m, 9.3% up on the previous year and the best performance for over 10 years.
UK automotive companies' reputation for being world class innovators was further supported by respondents underlining the industry's commitment to research and development. More than a third stated their companies invested between 7% and 10% of turnover in 2014, while 42% invested between 3% and 6%. Just under 60% were expecting this figure to increase this year.
Two thirds of respondents felt that they had limited visibility or understanding on Government support available to the industry and a third where, therefore, unsure whether government spending commitments were sufficient to secure the future of automotive manufacturing. Of the 69% who did express a view, over half believed support was insufficient.
Tom Lawton, head of manufacturing at BDO, said: "The overwhelmingly positive outlook from the automotive industry looks very encouraging for this key component of the UK manufacturing sector.
"The focus on export markets to deliver this growth comes as no surprise given the UK's reputation for world class innovation and it is essential that companies continue to reinvest in R&D to maintain this position on an increasingly competitive world stage."
He added: "The Government also has its part to play and it must do everything it can to support this export drive and to ensure that its support for the industry is well promoted and understood."
