Committee publication · Correspondence · 15 July 2025 · HC 727
Letter from the Minister for Industry relating to Government support for the UK automotive sector, 30 June 2025
From: Business and Trade Committee
Inquiry: Industrial Strategy
Summary
The Minister for Industry announces DRIVE35, a new £2bn automotive support programme launching as part of the Government's Industrial Strategy. The five-year capital and ten-year R&D funding scheme aims to accelerate research, development, and commercial scale-up in zero-emission vehicles, batteries, and supply chains, building on prior automotive support programmes and working alongside the National Wealth Fund.
Key findings
- Government announces DRIVE35: a £2bn automotive programme with capital funding over five years and R&D funding extending to 2035
- Programme focuses on zero-emission vehicles, batteries, and wider automotive supply chain transformation
- DRIVE35 builds on earlier Automotive Transformation Fund and Advanced Propulsion Centre R&D initiatives
- Designed to provide long-term certainty to investors and simplify government support offer compared to previous funding structures
- Programme will operate alongside the National Wealth Fund as part of comprehensive offer to attract strategic investment
Tone
SupportiveTopics
Key actors
Sarah Jones MP, Liam Byrne MP, Department for Business and Trade, Department for Energy Security and Net Zero, National Wealth Fund
Notable line
“DRIVE35 will provide long-term certainty to investors, with capital funding over five years and R&D funding for ten years, to”
Key Quotes
“… through our Advanced Manufacturing Sector Plan, the announcement of a new £2bn automotive programme: DRIVE35 (Driving Research and Investment in Vehicle Electrification).”
“DRIVE35 will provide long-term certainty to investors, with capital funding over five years and R&D funding for ten years, to”
“DRIVE35 will ensure continuity in Government support while transitioning to a new funding offer that is much simpler, clearer and faster.”
Source · parliament.uk record ↗