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Britain's automotive industry is poised to create almost 50,000 new jobs over the next two years, a study published Friday revealed.

Much of the expected investment in the auto sector will be fuelled by companies returning outsourced production back home from overseas.

The West Midlands, already considered Britain's "motor town," is predicted to create around 18,600 of those new jobs.

The report, Fuelling Growth, surveyed English and Welsh manufacturers from across the automotive supply chain. It found that nearly three-quarters (70 percent) of respondents are looking to "on-shore" some of their operations by the end of 2016.

Almost half (45 percent) of businesses quizzed said they had already repatriated, on average, a fifth of their production.

Businesses cited cost and time reduction, improving British economic conditions and also a desire to support local communities as reasons behind their decisions.

The report, by one of the Britain's major banking groups, Lloyds, said 76 percent of manufacturers in the sector expect to grow by up to 25 percent over the next two years, with an average of 18 percent expansion predicted.

On average, each business plans to create 27 jobs over this time period, which across England and Wales adds up to nearly 50,000 jobs.

As recruitment steps up a gear, the automotive sector is also eyeing new overseas markets as a growth area, with Western Europe and North America targeted. More than two-thirds stated that entering new markets is key to achieving their growth ambitions.

David Atkinson, head of manufacturing for small and medium-sized enterprises at Lloyds Banking Group, said: "Britain remains one of the leading players in automotive manufacturing, with a complex supply chain of high value engineering that is attracting significant inward investment."

"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 Britain," he added.

Mike Hawes, chief executive of Britain's leading sector body for the auto industry, the Society of Motor Manufacturers and Traders, said: "We welcome the findings from the report, which is further evidence of the renaissance in UK automotive manufacturing seen over recent years."

"We want to see this recent domestic success develop further, to help encourage the re-shoring of the supply chain and the growth of British-based companies' international markets," he added.

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Britain's automotive industry Lloyds Banking Group
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