The UK government has awarded more than £47 million in funding to 33 automotive projects as part of efforts to strengthen domestic vehicle manufacturing and accelerate the development of zero-emission technologies.
The funding was announced by the Department for Business, Innovation, Science and Trade and the Advanced Propulsion Centre UK. It comes through the £4 billion DRIVE35 programme, which is being delivered in partnership with the APC and Innovate UK.
The latest grants are expected to unlock more than £90 million in total investment when private-sector funding is included. Projects receiving support cover areas including electric vehicles, battery technology, advanced manufacturing, digital systems, circular economy solutions and zero-emission transport.
The funding has been distributed through four DRIVE35 programmes.
Sixteen start-ups, university spinouts and small and medium-sized businesses will receive more than £2.7 million through the Mobilise programme, which supports early-stage development.
Two collaborative research and development projects will receive more than £8 million through the Collaborate stream. A further 10 projects have been awarded £9 million under Demonstrate, which supports real-world testing of new technologies.
The largest allocation is £26.9 million for five projects through the Scale-up Fund. The programme is designed to help companies move promising technologies from development into manufacturing at commercial volumes.
Industry Minister Blair McDougall said the investment would help ensure that future generations of vehicles were designed and produced in Britain.
He said the funding would support skilled employment, strengthen manufacturing communities and contribute to the government’s wider industrial strategy.
Ian Constance, chief executive of the Advanced Propulsion Centre UK, said the projects demonstrated the strength of engineering and innovation across Britain’s automotive industry.
He said the programme was helping businesses move new technologies towards commercial production while bringing together companies, government and universities.
DRIVE35 was launched in July 2025 as part of the government’s Advanced Manufacturing Sector Plan and Modern Industrial Strategy. The programme supports companies across different stages, from early research and innovation to commercialisation and manufacturing expansion.
The government also announced new projects under the Connected and Automated Mobility Pathfinder programme, which aims to accelerate the deployment of connected and automated transport technologies across the UK.
The funding comes at a challenging time for Britain’s automotive industry. Vehicle production fell 7.5% year-on-year during the first half of 2026 to 385,979 units, according to the Society of Motor Manufacturers and Traders.
The industry body has called for faster implementation of the government’s industrial strategy as manufacturers face changing consumer demand, global competition and the costly transition towards electric and other zero-emission vehicles.
The latest investment is intended to support that transition while strengthening the UK’s capacity to develop and manufacture automotive technologies domestically.
