The government's New Automotive Innovation and Growth Team (NAIGT) has released a report outlining the future of the British car industry.
NAIGT has set out a 20-year vision for the struggling sector and advised the government to set up an automotive council to guide car manufacturers during the recession and beyond.
Chair of the team Richard Parry-Jones said: "The auto sector in the UK has transformed itself into a world-class industry, with superb design and engineering skills, very high productivity, product reliability that rivals the best in the world and flexible, constructive labour relations."
He added that the new report reflects the NAIGT's progress in realising its ambition of making the UK a key player in the global world of "developing and manufacturing exciting, low carbon vehicles for the future".
New car sales have struggled during the recession, although sales of used cars have risen significantly since the turn of the year.
Car manufacturer VOLVO recently revealed that sustainability, in the form of safety, environmental care and profitability, is going to be one of its main business focus.
The car manufacturer outlined the ambition in its Corporate Report for 2008/2009.
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