APC R&D programme delivers major economic boost to automotive sector
Date: 27 February 2026
- 10.5 million vehicles sold incorporating innovations developed through APC R&D programme as of 2022/23.
- 67% of R&D activity would not have taken place without the programme’s support.
- For every £1 of public investment £2.20 of private R&D leveraged, impact report shows
The government-funded Advanced Propulsion Centre (APC) R&D programme has made a substantial contribution to the UK’s high-value manufacturing sector and transition to zero-emission vehicles, according to a new impact report.
Published 26 February 2026, the Department for Business and Trade (DBT) Impact Evaluation of APC R&D programme demonstrates a decade of strong economic returns, increased R&D activity, employment gains, and progress towards zero-emission vehicle commercialisation.
The programme was established in 2013 as a joint initiative between the UK government the Automotive Council, and the Advanced Propulsion Centre UK. In partnership with DBT and Innovate UK, the programme provides public support for late-stage R&D and manufacturing process innovation research projects.
Over ten years 91 government and industry funded R&D projects were started, involving 428 partners, with a total investment of £1.3bn including government grants totalling £608m.
By 2023, a total of 10.5m vehicles integrating technologies developed through the programme had been sold, showing real-world, on-road, benefits of this support.
In a challenging environment faced by the automotive sector, the evaluation shows that the programme has sharply accelerated research and development activity across funded firms, driving a 7% increase in R&D expenditure and leveraging £2.20 in private investment for every £1 of public funding.
Two thirds of all R&D carried out by participants would not have happened without the APC R&D programme’s support.
Crucially, it has also had an impact on jobs in the automotive sector, the analysis shows the programme created or safeguarded around 8,300 R&D and 156,000 production employment years between 2013 and 2023.
Rik Adams, Innovation Delivery Director, Advanced Propulsion Centre UK, said
“These results demonstrate the APC’s critical role in securing the UK’s automotive sector as part of the transition to zero-emission vehicle manufacturing. By backing ambitious innovation through the R&D programme with our partners in DBT and Innovate UK, we’re supporting thousands of jobs, boosting local economies, and helping UK technologies succeed on the world stage.
The successful R&D programme gives us a platform to continue accelerating innovation in UK automotive. Through to the launch of DRIVE35, our job is to ensure we deliver positive impacts and contribute to the growth of the industry now and in the future.”
Minister for Industry Chris McDonald said:
“Our automotive sector is vital to the economy, and these reports show just how crucial the APC’s R&D programme has been in powering the EV charge in the sector – with 8,300 jobs in the sector secured, and 10.5 million vehicles sold featuring technology developed through the programme.
“Through our modern Industrial Strategy, we’re backing British carmakers with the largest government investment in the automotive industry in the post-war era, helping to create tens of thousands of jobs and attracting billions in private investment through the DRIVE35 programme.”
The findings of the evaluation show that the APC R&D programme has proven to be a highly successful and has largely delivered value for money against all its intended objectives. The programme has successfully supported the commercialisation of the funded technologies and has supported the creation or safeguarding of significant numbers of R&D and production jobs.
The industry continues to face a number of external threats. While the R&D programme has proven effective in safeguarding UK based activity, the challenge remains to achieve higher volumes. The report notes that more recent DBT initiatives such as the capital investment Automotive Transformation Fund (ATF) and launch of DRIVE35, could be expected to tackle some of these issues.