The British car industry has been handed a double boost as Nissan and McLaren announced close to £700million of fresh investment.

In a major vote of confidence in its UK operations, Japanese car giant Nissan said it would build its new hybrid Kicks model at its plant in Sunderland.

The move brings £170million of investment to the North East and will help secure jobs after a difficult period for the company and the car industry.

At the same time, McLaren unveiled plans to invest £500million in the UK and create 1,000 new jobs by 2032.

The cash will be spent across McLaren's sites including at its production centre in Woking in Surrey and its manufacturing and research base in South Yorkshire. 

The investment will also provide the manufacturing capacity for McLaren to bring its first ever performance SUV to the market as it plans to go head-to-head with Aston Martin's DBX, Ferrari's Purosangue and Lamborghini's Urus.

Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said: 'Two major announcements in one day from Nissan and McLaren are a major boost for the industry and wider economy.

'New investment, new products and new jobs underline the fundamental strength of UK automotive manufacturing and its ability to deliver growth, innovation and high-value employment across the country.

'It's evidence that Britain remains a global leader in high-performance and volume automotive manufacturing and we must build on this good news, ensuring the competitive conditions to unlock further industrial investment.'

On a visit to McLaren's Woking base, Andy Burnham welcomed a 'huge vote of confidence in Britain from McLaren, one of our world class manufacturers'.

He added: 'It's wonderful to see the investment they have been making here and in Rotherham, and it's a sign of confidence long-term in the British economy.

'McLaren is doubling down on Britain, keeping the design, the engineering and the building of every future car here, and taking on a thousand more people to do it.'

The investment by Nissan and McLaren comes as the carmakers in the UK grapple with subdued demand, the transition to electric vehicles, and intense competition as Chinese manufacturers flood the market with cheap alternatives.

The problems are being felt across Europe – most notably in Germany where car giant Volkswagen is axing 100,000 jobs.

The European boss of US car maker Ford this week called for a 'level playing field' in the battle against cheap Chinese cars flooding the UK market.

Jim Baumbick told the Daily Mail that policy makers could do more to recognise the value of traditional manufacturers in Britain and Europe employing thousands of people as they face the threat.

Without that, he said, Ford – which has major sites in Germany and Spain as well as the UK – would have to 'do what is necessary' to remain profitable.

'I would always invite competition, I think competition breeds excellence. But it needs to be a fair playing ground. You would never start a football match with different numbers of personnel on each side,' Baumbick told the Mail.

'I think regulators across Europe and in the UK need to actually create a level playing field for all OEMs [manufacturers] to compete and serve the domestic agenda for Europe and the UK.'

Against that backdrop, the fresh investment in the UK from Nissan and McLaren was particularly welcome.

Business Secretary Jonathan Reynolds hailed the 'biggest investment in our car industry in the post-war era'.

He said: 'I want to thank McLaren for proving that the UK is and will remain a great car-making nation.'

And he added: 'Nissan has been at the heart of British manufacturing for four decades, with Sunderland producing millions of vehicles, supporting thousands of skilled jobs and helping establish the North East as a global automotive powerhouse.'