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Government announces £130m funding boost for UK automotive industry

  • Government set to give automotive tech a boost with £130m investment
  • Several UK-based car manufacturers will get a slice of the funding
  • Ministers say move will help to ‘drive the reindustrialisation of Britain’

Time 6:30 am, August 11, 2026

The Government has announced £130m of new funding aimed at giving Britain’s automotive sector a much-needed boost.

Ministers yesterday (Aug 10) announced plans to provide additional cash through the UK’s Modern Industrial Strategy, helping to support an estimated 1,800 jobs while providing additional investment for car manufacturing firms based here.

Bentley and Nissan are among a host of big name firms set to benefit from the money, though a number of smaller firms will receive additional funding too.

It is expected that Nissan will pump the extra support into its Sunderland plant, where it will be used to support the development of self-driving vehicles.

It’s being assisted as one of nine projects getting funding within the UK’s connected and automated mobility (CAM) industry. How much investment the sector is getting has not been disclosed, however.

Confirming the news, 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.

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‘This investment will secure skilled jobs, strengthen our manufacturing heartlands and help drive the reindustrialisation of Britain.

‘Through our Modern Industrial Strategy we’re backing working people and British businesses to deliver growth in every part of the country.’

This latest round of investment forms a part of the Government’s DRIVE35 project, which is set to invest £4bn up to the year 2035 in helping speed up the ‘electrification of the automotive industry’.

In total, the Government will release £65m of funding, which will be matched by industry itself.

Jack Williams's avatar

Jack joined the Car Dealer team in 2021 as a staff writer. He previously worked as a national newspaper journalist for BNPS Press Agency. He has provided news and motoring stories for a number of national publications including The Sun, The Times and The Daily Mirror.



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