Fuelling Growth surveyed English and Welsh manufacturers from the across the automotive supply chain and found that 70 per cent of respondents are looking to reshore some of their operations by the end of 2016.

Of those surveyed, 45 per cent said they had returned a fifth of their production to the UK, with businesses citing cost and time reduction, improving UK economic conditions and the desire to support local communities as reasons behind their decision.

A total of 76 per cent of manufacturers in the automotive sector expect to grow by up to 25 per cent over the next two years, with each business, on average, planning to create 27 jobs in that period which equates to almost 50,000 jobs.

David Atkinson, head of manufacturing and SME commercial banking at Lloyds Banking Group, said: “The sector’s growth in recent years has made the automotive industry the ‘jewel in the crown’ of the nation’s economy, and this looks set to continue with thousands of new jobs predicted to be created.

“It is particularly encouraging to see the commitment of many firms to bring their manufacturing processes back onshore as a way of helping to support both local communities and the wider economic recovery of the UK.”

Mike Hawes, chief executive at The Society of Motor Manufacturers and Traders, added: “The UK has some of the most productive vehicle manufacturing operations in the world and a supply chain with the potential to compete anywhere.

“We want to see this recent domestic success develop further, to help encourage the re-shoring of the supply chain and the growth of UK based companies’ international markets.”

While production is being brought back to Britain, 68 per cent of those surveyed said that entering new markets is “key to achieving their growth ambitions”, with almost 74 per cent aiming to invest in, or engage with, new international customers over the next two years.