A SWINDON business group has welcomed news that Honda will be investing £200m in the town factory, making it the global hub of production for the new Civic model.

The Swindon and Wiltshire Initiative, part of the Business West group, has welcomed the news, saying it could help other firms in the town develop trade.

Ian Larrard, the director of the Swindon and Wiltshire Initiative, said: “The announcement that Honda will invest a further £200m is a huge boost for the local area and builds on the increase in business confidence we are seeing in Swindon.

“The new plans to develop the next generation of the Civic model that will be distributed globally will only improve our international profile and stimulate future growth.

“Honda has invested some £2.2bn in the Swindon plant over the last 20 years and its continued support is vital to our long-term prosperity.”

The announcement came on Tuesday and Honda Motor Europe president Toshiaki Mikoshiba said: “This announcement sends a clear message of the strategic importance that Honda places on producing cars at our plant in Swindon.”

Civic production began at Swindon more than 20 years ago.

The news is the latest in a series of recent boosts to car manufacturing in the UK, with Jaguar Land Rover and Coventry-based London Taxi Company announcing investment plans in the past week.

Jaguar Land Rover announced £600m in new investment into its West Midlands operations, covering the Castle Bromwich and Whitley sites.

And the Coventry-based London Taxi Company revealed a £250m investment – as well as the creation of 1,000 jobs – as it prepares for production of a new range of ultra low emission taxis.

In 2014, more than 1.5 million cars were produced in the UK – an increase of 50 per cent since 2009, and the sector’s best performance since 2007.

Society of Motor Manufacturers and Traders chief executive Mike Hawes said: “It has been a fantastic week for UK automotive with more than £1 billion earmarked by vehicle manufacturers for new model production that will drive further growth for the sector.

“Honda’s decision to build its next generation Honda Civic a global car in an important and growing segment, here in the UK caps off a record six days – the first time three manufacturers have announced nine-figure investments over such a short period of time.”