The UK government unveils £130m to protect 1,800 jobs, fund Nissan, Bentley and drive electric and autonomous vehicle growth.

The UK Government has announced a £130 million funding package designed to give the British automotive sector a vital lift.

What does the £130m government funding boost mean for the UK automotive sector?

£130 million injection announced on 10 August

On 10 August ministers revealed that the new money will be delivered through the Modern Industrial Strategy, a policy framework aimed at strengthening UK manufacturing. The funding is expected to safeguard around 1,800 jobs and to stimulate further investment from car‑making firms that operate in the country.

Which manufacturers stand to benefit?

Among the recipients are high‑profile marques such as Bentley and Nissan. Both large‑scale producers will receive a share of the cash, but the announcement also confirms that smaller, specialist firms will be supported. Nissan, for example, has indicated that the additional resources will be channelled into its Sunderland plant to accelerate development of self‑driving vehicle technology.

Connected and Automated Mobility (CAM) projects

The Sunderland investment is part of a wider set of nine projects receiving funding under the UK’s Connected and Automated Mobility (CAM) programme. While the total amount allocated to the CAM sector has not been disclosed, the inclusion of the Sunderland site highlights the government’s focus on autonomous vehicle research.

Linking the boost to longer‑term industrial plans

Industry Minister Blair McDougall framed the announcement as a continuation of Britain’s historic leadership in motor manufacturing. He said the money will "secure skilled jobs, strengthen our manufacturing heartlands and help drive the reindustrialisation of Britain". The Minister added that the Modern Industrial Strategy is designed to back working people and British businesses, delivering growth across every part of the country.

DRIVE35: a £4 billion roadmap to electrification

The £130 million injection forms part of the Government’s DRIVE35 programme, a broader commitment of £4 billion that will run until 2035. DRIVE35 is intended to accelerate the electrification of the automotive industry, positioning the UK as a competitive hub for electric and low‑emission vehicle production.

Within the immediate package, the Government will release £65 million in new funds, which is expected to be matched by an equal contribution from industry partners, creating the full £130 million pool.

What this means for the UK automotive landscape

By targeting both autonomous technology and electric vehicle (EV) development, the funding package aims to future‑proof the sector. Supporting established players such as Bentley and Nissan helps preserve existing supply chains, while the inclusion of smaller firms encourages innovation at the grassroots level.

For dealers and buyers alike, the move signals a longer‑term commitment to keeping vehicle design, engineering and production within the UK. As the industry shifts towards EVs and self‑driving systems, the new capital is likely to underpin the next generation of models that will appear on dealership forecourts.

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The original story was published on Car Dealer Magazine.

What does the £130m government funding boost mean for the UK automotive sector?

£130 million injection announced on 10 August