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UK Government announces £130m boost for EVs and autonomous cars
A huge boost for the UK’s automotive industry will focus on developing electric vehicles and self-driving technology
The UK Government will invest nearly £130 million into the development of the nation’s automotive industry in a bid to ramp up the transition to electric cars.
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This investment will be funded equally by the state and the automotive industry. The money will be delivered through the Government’s Drive35 programme, a £4 billion scheme designed to accelerate and support the production of electric cars in the UK. Some big names to receive investment are Bentley and Nissan, alongside a number of smaller companies and start-ups.
The Government claims that this investment will support more than 1800 jobs across the UK, and demonstrates Prime Minister Andy Burnham’s mission to reindustrialise the nation.
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.”
Eleanor Cooper
Updated: 10 August 2026
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While cars are no longer the UK’s most valuable export, they accounted for £27.2 billion in the year ending May 2026. They have since been overtaken by exports of power generators and medical products – a statistic not helped by the fact that car production continues to fall year-on-year. In 2025, the UK produced 764,715 cars – the lowest figure in 73 years.
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This was down to other factors such as tariffs imposed by the US and the cyber attack on Jaguar Land Rover, but figures suggest that this downward trend will continue. According to figures from the Society of Vehicle Manufacturers and Traders (SMMT), vehicle output fell by 7.5% in the first half of 2026 compared with the year before.
The funding will be injected into research and development of both vehicle manufacturing and self-driving tech. Some £17 million has been dedicated to the latter, funding connected and automated mobility (CAM) projects – one of which is being carried out by Nissan, which operates one of the UK’s largest car manufacturing plants in Sunderland.
This comes as the Government is preparing to consider backpedalling on its Zero-Emission (ZEV) Mandate, which sets out targets for EV sales from 2027-2035. The review will last six weeks and will consult with carmakers, wider industry and other stakeholders to potentially reduce the proportion of EVs car manufacturers must produce before 2035.
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Read more: ZEV mandate: 33% of new cars must be electric this year >>
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