21 Nov 23
News

The UK automotive industry receives £2bn funding from the government

The UK automotive industry receives £2bn funding from the government

The UK government has announced a £4.5bn (5.17bn) funding programme to support strategic manufacturing sectors, pledging £2bn (2.3bn) of this sum to the automotive industry. 

The government aims to hasten the transition efforts towards net zero and seize the opportunities in the new green economy, where the UK is a leading player. Amidst the growing global competition in the automotive industry, the funding also aims to support the development of zero-emission vehicles (ZEVs). 

The UK is ambitious to increase the attractiveness of the local market for international investments to seize growth in critical areas, such as electric vehicle (EV) batteries. The government hopes the funding will drive the economy and create more skilled jobs in new industries. 

The funding, which spares £2.5 for aerospace, clean energy manufacturing and life sciences manufacturing, will be available from 2025 for five years, supporting industries while reducing future financial concerns. The government wants to support domestic manufacturers, improve their supply lines, and attract international investment to develop advanced automotive and mobility technology. Under this goal, the UK is also ambitious in self-driving technologies, hoping to boost regulations and innovation in autonomous driving by passing the Automated Vehicles Bill. 

The UK government estimates that the self-driving market will reach a £42 billion (€48 billion) volume by 2035, creating 38,000 jobs. 

The main image is courtesy of Shutterstock, 1584801865.

Authored by: Mufit Yilmaz Gokmen