Britain is investing nearly £130 million to strengthen its zero-emission vehicle industry as it races toward the transition away from petrol and diesel cars. Almost £65 million will come from the government, with industry providing the remainder.

Nearly £50 million will support automakers and research partners developing and scaling zero-emission technologies, while another £17 million will fund nine connected and automated mobility projects involving technologies such as sensors, brake-by-wire systems and AI simulation.

The investment comes as Britain faces growing competition from Chinese carmakers. Chinese brands now account for about 15 per cent of new-car registrations in the UK, led by SAIC’s MG, BYD, and Chery’s Jaecoo and Omoda brands.

Their competitively priced electric and plug-in hybrid vehicles are putting pressure on established manufacturers and forcing them to offer deeper discounts.

Britain has committed to ending sales of new cars powered solely by petrol or diesel by 2030, with all new cars required to be zero-emission by 2035.

Achieving these targets will require advances in battery efficiency, powertrain integration, lightweight materials and automated-driving technology.

The government argues that Britain must not simply become a market for electric vehicles produced elsewhere. It wants the country to retain the engineering, manufacturing and research capabilities needed to design and build the next generation of vehicles.

The challenge is therefore both environmental and industrial. Britain’s transition to electric mobility could create a new manufacturing opportunity, but without sustained investment and technological progress, cheaper and increasingly sophisticated Chinese competitors could capture a growing share of the market.