The government will back almost 40 new projects to develop driverless and low-carbon vehicles with more than £100m in funding.
Business secretary Greg Clark will today sign off the funding with BMW, Ford and Jaguar Land Rover among beneficiaries.
In all, 38 projects will split the funding, with 14 low emissions schemes taking just over two-thirds of the cash.
Supported plans include new battery technology for high performance cars, efforts to support convoy travel between Stockport train station to Manchester Airport, and projects which could make any car operate autonomously.
“Low carbon and driverless cars are the future and as a government we are determined through the industrial strategy to build on our strengths and put the UK at the forefront of this revolution,” Clark said.
“Investment in this technology is an integral part of this government’s efforts, to ensure the UK auto sector remains competitive and world-leading.
“The projects being awarded funding today will help extend our excellence in these cutting edge research fields, helping to safeguard jobs while ensuring the UK remains the go-to destination for automotive excellence.”
The government has additionally confirmed that electric vehicle buyers will continue to benefit from up to £4,500 off the cost of a vehicle, and £500 towards the installation of a charge point at home.