UK to tackle car industry challenges from India

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Britain has launched a study to identify measures to tackle the twin challenges of low-cost competition, to be faced by the UK's car industry from India and other countries, and to lower-carbon transport in order to remain competitive in the globalised world.

"The UK's car industry is one of the most successful in the world, with a number of manufacturers currently enjoying record levels of production at their UK plants," Britain's Indian-origin Business Minister Shriti Vadera announcing the launched of the investigation said.

"But the industry, like many others, is facing a number of challenges as it moves into the next decade, particularly in terms of reducing emissions and tackling a continued rise in competition from low-cost countries such as China, India and Eastern Europe.

"We need to ensure our car industry can build on its existing strengths and remain competitive in an increasingly globalised world," Vadera said.

The UK automotive industry is expected to face competition from low cost products such as 'Tata Nano' from India and other economies like China and Eastern Europe.

The committee, led by former Ford vice-president Richard Parry-Jones and other industry experts, is expected to make recommendations to the government by March 2009.

"New challenges, such as sustainable mobility solutions, and the emergence of strong auto markets and sectors in the East, provide powerful stimuli for change. I am looking forward to working with colleagues to define the challenges and suggest ways to enhance our ability to meet them through collaboration," Parry-Jones said.