The Government has committed £109.7 million worth of funding for development of driverless and low-carbon vehicles.
A range of projects will now benefit form the cash injection, including a scheme to improve the batteries of high-performance cars and an initiative to enhance the electrification of SUVs.
The supporting ministers also confirmed that grants of up to £4,500 will continue to be offered to divers who buy ultra-low emission cars.
Some grants worth up to £2,500 will also be available for people buying hybrids, however £500 worth of funding is also available for those who want to install domestic charging points.
Greg Clark, Business and Energy Secretary, said that low-carbon and driverless vehicles are the future of British transport sector.
He added: “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.
“Investment in this technology is an integral part of this Government’s effort to ensure the UK auto sector remains competitive and world-leading.”
Mr Clark went onto add that the project which have been given extra funding will assist in safeguarding jobs, as well as providing further support to cutting-edge research.
Mr Clark ended by saying that they will ensure the UK remains the “go-to destination for automotive excellence.”
Last week was the launch of the UK’s first public test on driverless vehicles. In London, approximately 100 people will test the prototypes using a two-mile route close to the O2 Arena.