Improving the supply chain - which is at capacity - is critical to Jaguar Land Rover continued success, its UK government affairs manager said.
JLR sales were up almost 18 per cent in 2011, with 80 per cent of volume coming from 177 export markets.
But Jeegar Kakkad has raised concerns about whether parts suppliers can keep up with demand.
“Our investment in the UK poses a critical challenge: can our UK supply chain expand fast enough?,” Mr Kakkad said.
“About 50 per cent of our materials budget goes to UK suppliers. But the UK auto supply chain is already at capacity, meaning further growth must come from new investment.
“Original equipment manufacturers (OEMs) like being near supplies with high logistics costs or a critical business impact.
“So improving supply chain finance is vital to our continued success in the UK.”
JLR ended last year with more than £500 million profits and a 37 per cent increase in volumes in the fourth quarter.
Later this year JLR will build a £350 million engine facility near Wolverhampton and a £100 million advanced research facility at Warwick Manufacturing Group.
Mr Kakkad said: “We’re investing in our three UK manufacturing plants to handle a significant ramp up in volumes.
“And economies of scale mean we can grow in the UK, while helping to keep our costs base under control.
“Our two state-of the art R&D facilities in the UK are designing and developing 40 new products and variants.
“We want this expansion to build off our investments in a bigger and stronger UK presence.”