There is no room for complacency despite impressive levels of growth in the automotive sector, MPs have warned.
They called on the Government to pump investment into research and development of low-emission vehicles to make the UK a world leader in low carbon technology.
The conclusions were published by the All Party Parliamentary Motor Group, chaired by Birmingham Northfield MP Richard Burden (Lab). Solihull MP Lorely Burt (Lib Dem) is a vice-chairman.
Publishing their annual report, they highlighted the automotive sector's contribution to the economy - adding £12 million in net value.
Global vehicle manufacturers have invested £6 billion in the UK automotive industry.
The MPs called on all parties in Westminster to unite around the delivery of the Government's automotive sector strategy to secure long term growth in the sector.
The report also warned that the Government must work collaboratively on a range of automotive issues, including low emission vehicles, air pollution and the future of inward investment.
It contained four key recommendations including ensuring that the Automotive Sector Strategy, published jointly by the Government and industry representatives in 2013, is taken forward across Government departments and adopted by all political parties.
The group backed the Government's announcement of £500 million funding for ultra-low emission vehicles and said this must be used to position the UK as a world leader in low carbon technology.
It called for a collaborative approach and concerted action to boost skills and supply chain capacity.
And the MPs warned that air pollution poses a serious risk to the nation's health and the Government must promote the uptake of new technology and implement measures that encourage motorists to cause less pollution.
Mr Burden said: "The automotive industry is our country's largest sector in terms of exports and employs over 700,000 people in jobs ranging from repair to ultra-low emission vehicle design.
"Our report this year calls on all parties in Westminster to unite around the delivery of a long term strategy for automotive.
"The all party group knows there is no room for complacency. From the barriers SMEs face in attracting investment to the issues of air quality and road transport, our meetings have explored a range of challenges and opportunities for the automotive sector.
"We need concerted efforts by the Government and industry to ensure the automotive continues to drive ahead."
The Society of Automotive Manufacturers and Traders (SMMT) last month reported that 1.29 million new cars had been registered in first six months of the year - a 10.6 per cent rise and the best half-year total since 2005.
Market is on track for 2.4 million new car registrations in 2014, up more than six per cent on last year, the SMMT said. Car manufacturing rose 3.5 per cent in the first half of 2014, to 791,314 units.
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