Motor industry leaders have launched a drive for government support to help unlock private sector investment into fast-emerging low carbon technologies.
The Society of Motor Manufacturers and Traders (SMMT) said there were "real opportunities" to strengthen the country's supply base, which would also boost economic growth.
Targeted tax incentives and support programmes could trigger private sector investment, said SMMT chief executive Paul Everitt.
"Automotive manufacturing can drive UK economic recovery, enhance global competitiveness and lead the transition to a low carbon future if targeted incentives are in place to encourage private sector investment," he said.
"The competition for high value investment is intense and it is essential the UK does all it can to win its share. The industry has demonstrated great strength and resilience and this has been rewarded by new commitments to UK facilities from global vehicle manufacturers.
A Department for Business spokesman said: "We already have 11 of the world's global vehicle manufacturers in the UK, supported by 19 of the world's top 20 suppliers. But the Government is doing all it can to encourage further investment here in Britain."
Copyright © Press Association 2011