Automotive sector to get £130m boost

Delivered through the UK's Modern Industrial Strategy, the funding will support over 1,800 jobs - and thousands more in the supply chain - across the UK, helping to put more money in people's pockets and ensure Britain is better off.

Auto firms and key R&D partners have been awarded nearly £50 million in government funding that will help businesses build and produce the zero-emission vehicle technologies of the future at scale - helping to drive economic growth while simultaneously making EVs cheaper for consumers.

This latest funding is delivered through the DRIVE35 programme - the biggest government investment into the UK’s car industry of the post-war era, with £4 billion to 2035 speeding up the electrification of the automotive industry. This builds on the Government’s mission to reindustrialise every part of the UK, back British innovation and ensure companies are able to succeed and scale here at home.

Industry Minister Blair McDougall said: "Britain invented the modern motor industry and we're determined to ensure the next generation of vehicles are designed and built here too. This investment will secure skilled jobs, strengthen our manufacturing heartlands and help drive the reindustrialisation of Britain. Through our Modern Industrial Strategy we're backing working people and British businesses to deliver growth in every part of the country."

The Government is doubling down on its commitment to delivering growth in every region. With the North East and West Midlands serving as the UK's powerhouse regions for automotive manufacturing, this funding will provide vital support to flagship companies such as Turntide Technologies and Bentley, helping to ensure the next generation of vehicles are designed, developed and built here in the UK.
 
This follows £100 million worth of DRIVE35 grant funding already being delivered to supply chain businesses in both of these regions, preparing them for the electric vehicle transition. With the connected and automated mobility (CAM) industry expected to create tens of thousands of high-quality jobs and contribute around £66 billion to the economy by 2040, according to SMMT. The Government is injecting £17 million into a further nine successful CAM Pathfinder projects, paving the way for innovators to develop, test and scale cutting-edge transport technologies - reinforcing the UK's position as a global leader in this growing industry. Altogether this industry-matched funding totals nearly £130 million, showcasing the best of British innovation on the global stage and bolstering the UK’s advanced manufacturing sector.

Ian Constance, Chief Executive at the Advanced Propulsion Centre UK, said:  “The projects announced today demonstrate the depth of innovation and engineering excellence that exists across the UK automotive sector. Through DRIVE35, we are supporting businesses to move promising technologies to commercial deployment and manufacturing at scale.

“This investment is about far more than individual projects. It is about strengthening the UK's capability to design, develop and build the technologies that will define the vehicles of the future. By bringing together industry, government and academia, DRIVE35 is helping create the conditions for long-term growth, increasing investor confidence and reinforcing the UK's position as one of the world's leading destinations for automotive innovation."

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