Britain’s automotive sector is set to receive about €151 million in combined public and private investment to accelerate the development of zero-emission and automated vehicle technologies.

Announced on 10 August 2026, the funding is expected to secure more than 1,800 skilled manufacturing jobs while supporting thousands more across the wider supply chain.

Almost €76 million will come from government funding, matched by investment from industry. The package forms part of the UK’s wider Modern Industrial Strategy and is intended to help companies move new technologies from research and development into commercial production.

Zero-Emission Projects Expand

Automotive companies and research partners have been awarded nearly €58 million in government funding for projects focused on scaling up zero-emission vehicle technologies.

The grants are being delivered through DRIVE35, the government’s long-term programme for the automotive sector. DRIVE35 represents around €4.66 billion of investment through to 2035 and is designed to accelerate vehicle electrification, expand domestic battery production and strengthen UK-based automotive supply chains.

Projects receiving support involve companies including Turntide Technologies, Bentley Motors, YASA, Anaphite, Nexperia UK and Electra Commercial Vehicles. The funding is spread across programmes aimed at scaling promising technologies, preparing products for commercial use and demonstrating new manufacturing processes.

The government says DRIVE35 is intended to support more than 50,000 direct jobs by 2035, alongside tens of thousands of additional positions across the supply chain. It is also expected to reduce millions of tonnes of CO₂ emissions and attract billions of euros in private investment.

Automated Mobility Gets €20m

Connected and automated transport is another major focus. Around €20 million will support nine projects through the 2026–27 CAM Pathfinder programme.

The projects cover technologies ranging from sensors, brake-by-wire systems and artificial-intelligence simulation to practical applications in public transport, passenger mobility, construction, airport operations and highway maintenance.

Successful lead organisations include Gravis Robotics, Cambridgeshire County Council, Five AI, Aurrigo, Nissan Motor Manufacturing UK and Ringway Infrastructure Services.

According to industry estimates cited by the government, the UK’s connected and automated mobility sector could contribute around €76.9 billion to the economy by 2040 while creating tens of thousands of highly skilled jobs.

Manufacturing Regions Benefit

The investment is also intended to strengthen established automotive regions, particularly the North East and West Midlands. Companies operating in locations from Gateshead to Crewe are among those benefiting from the latest awards.

The new package follows approximately €116.5 million in DRIVE35 grants already being delivered to supply-chain businesses in these regions to help them prepare for the transition to electric vehicles.

The Advanced Propulsion Centre UK, working with Innovate UK, is helping to deliver the funding. Established in 2013, the organisation connects government, industry and academia to support research and investment in zero-emission vehicle manufacturing.

The latest awards underline the UK’s effort to keep advanced vehicle development and production within the country as the global automotive industry moves towards electrification and automation. By combining public investment with industry funding, the programme aims to turn emerging technologies into commercially viable products while protecting manufacturing jobs and building a more resilient domestic supply chain.