The low carbon vehicles industry has received a £84 million boost from government and the private sector.
BEIS and the industry are providing £42 million each through the Advanced Propulsion Centre (APC).
A total of five projects from McLaren Automotive, Jaguar Land Rover, Turner Powertrain and Dearman have won a share of the fund to develop innovate low carbon propulsion technology.
The projects, which include the development of clean vehicle technologies such as hydrogen engines, modular combustion systems and energy storage systems are expected to create 1,200 jobs and put the APC ahead of its target to save 50 million tons of emissions.
Climate Change and Industry Minister Nick Hurd said: “The UK is already a global leader in the design, development and manufacture of low emission vehicle technology. The funding announced today underlines the government’s confidence in this growing sector, which brings with it exciting new opportunities for the automotive industry.”