The UK low carbon vehicles industry is forecast to see an increase in annual sales of £2.9 billion in the next 15 years.
That’s according to a report by Innovate UK, which highlights the impact of the Low Carbon Vehicles Innovation Platform (LCV IP) on the country’s economy.
The LCV IP, launched in 2007, works with the automotive industry to develop new technologies to increase energy efficiency, vehicle use and reduce emissions.
The report reveals every £1 invested by the LCV IP is expected to return £20-£34 over 15 years.
It stated £41 million of investment support is forecast to add £820 million during the same period.
Businesses also expect to create around 12,000 jobs and invest more than £519 million.
Roland Meister, Head of Transport at Innovate UK said: “We’re helping to drive forward economic growth in this highly productive sector already rich in export success. This is what our work is all about and the sector is a prime opportunity for patient investors.”