Automotive funding opportunities and how to get involved
Opportunity Auto is SMMT’s campaign to promote the UK as one of the world’s most compelling destinations for automotive investment. Find out the automotive funding opportunities available to manufacturers looking to invest in the UK.
Major automotive national funding programmes
DRIVE35 programme (£4bn)
DRIVE35 is the UK Government’s flagship, long‑term investment programme for the automotive sector, supporting the transition to zero‑emission vehicle manufacturing and advanced supply‑chain capability.
It supports companies at every stage of growth, from R&D through to large‑scale manufacturing, across three pillars:
- Innovation
- Scale‑up
- Transformation
How to get involved:
Funding competitions open throughout the year. Businesses should monitor Innovate UK and APC competition rounds and prepare consortia where required.
Mobilise – Supports UK automotive start-ups, spinouts and SMEs developing zero-emission or connected mobility technologies, providing grant funding, mentoring and technical support to help bring innovations closer to market. Find out more
Demonstrate – Helps businesses rapidly develop and test working product or process demonstrators, proving commercial potential through short-term, late-stage R&D projects. Find out more
Collaborate – Funds ambitious collaborative R&D projects that bring together consortia of industry and SME partners to accelerate the development and commercialisation of strategic ZEV technologies. Find out more
Feasibility Studies – Supports detailed assessments of potential UK manufacturing investments, helping businesses validate the case for deploying new zero-emission vehicle technologies at scale. Find out more
Scale-up Fund – Enables companies to build pilot and demonstration manufacturing facilities, supporting the transition from proven technology to commercial production with grant-backed private investment. Find out more
Transformation (Automotive Transformation Fund) – Supports major capital investment projects that strengthen the UK’s electrified automotive supply chain, helping industrialise large-scale zero-emission vehicle and battery manufacturing. Find out more
Connected and Automated Mobility (CAM) Pathfinder (£150m)
The CAM Pathfinder Programme supports the development and deployment of connected and automated mobility technologies across the UK.
Funding supports:
- Feasibility and concept studies
- Pilot projects and real‑world trials
- Technology demonstrators
The programme complements the Automated Vehicles Act (2024), providing a clear regulatory pathway for deployment.
How to get involved:
Competitions are delivered by Innovate UK, Zenzic, APC and DBT. Projects often require collaboration between industry, technology providers and research organisations.
Battery and electrification support
Battery Innovation Programme (£452m)
Launching from April 2026, the Battery Innovation Programme supports the full battery value chain, from research through to manufacturing scale‑up.
Support includes:
- Fundamental research via the Faraday Institution
- Collaborative R&D competitions
- Industrialisation, manufacturing trials and skills development via UKBIC
How to get involved:
Opportunities will be published via Innovate UK and UKRI. Businesses can engage at research, development, industrialisation or skills stages.
Support for Automotive SMEs and scaling businesses
R&D tax relief
UK‑based automotive SMEs undertaking qualifying R&D activities can benefit from R&D tax relief, reducing the cost of innovation across engineering, software, manufacturing processes and product development.
How to get involved:
Claims are made through HMRC, either directly or with specialist support, and can be combined with grant funding.
Made Smarter (England)
Made Smarter Adoption helps manufacturing and automotive SMEs adopt digital technology to boost productivity and competitiveness.
Support includes:
- Match‑funded grants
- Technology and process advice
- Leadership and workforce development support
How to get involved:
Eligible businesses (SMEs with manufacturing sites in England) can register directly via Made Smarter and engage with regional delivery partners.
Finance, export and automotive investment support
Alongside grants, the UK provides access to government‑backed finance and automotive investment support through:
- British Business Bank – loans, guarantees and growth finance for smaller businesses
- UK Export Finance – export finance, guarantees and working capital support
- UK National Wealth Fund – long‑term capital backing strategic investments
These routes are particularly relevant for companies seeking to commercialise, export or expand production capacity.
How to get involved:
Businesses can engage directly or be referred via government and industry partners.
Wider business support and investment routes
- The Department for Business and Trade (DBT) offers advice, trade and investment support
- The Business Growth Service acts as a one‑stop shop for government business support
- The Office for Investment coordinates support for large‑scale, strategic investment projects
These routes are especially relevant for international investors or major UK expansion projects.
Regional and devolved administration support
Additional automotive funding and support is available through:
- Scotland, Wales and Northern Ireland, via devolved governments
- Combined Authorities and regional growth bodies, particularly in the West Midlands and North East of England
These programmes often align closely with national funding and can provide tailored, location‑specific support.
How to get involved:
Businesses should engage with regional development agencies or local authorities alongside national programmes.
West Midlands Supplier Readiness & Transformation Fund
The West Midlands Supplier Readiness & Transformation Fund is a £50 million DRIVE35-backed programme supporting automotive suppliers investing in the region’s transition to zero-emission vehicle production.
Offering grants of £250,000 to £3 million at up to 50% funding intensity, the scheme helps businesses expand manufacturing capability, increase capacity and diversify into EV supply chains through investment in equipment, tooling, production processes and facilities.
North East Supplier Readiness & Transformation (SRT) Scheme
The North East Supplier Readiness & Transformation Scheme is a £50 million DRIVE35-funded programme designed to strengthen the region’s EV supply chain and attract new automotive investment.
Businesses of any size can apply for grants of £250,000 to £3 million, covering up to 50% of eligible project costs, to support investments that improve productivity, manufacturing capability and readiness for electric vehicle production, with projects required to invest at least £500,000 in the North East.
How SMMT can help
SMMT works closely with government, delivery bodies and industry to help companies:
- Understand which funding routes are most relevant
- Navigate eligibility and application processes
- Make the right connections with partners, investors and policymakers
For companies considering investment or expansion in the UK automotive sector, SMMT can act as a gateway into the ecosystem.
Find out more about how SMMT can support your business:
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