Government funding of £109.7m has been awarded to help develop the next generation of driverless and low-carbon vehicles, as part of the Industrial Strategy and the government’s Plan for Britain.

Seven projects will share grants from the latest round of funding from the Advanced Propulsion Centre (APC), the joint industry-government programme aiming to put the UK at the forefront of low carbon vehicle technology.

The projects, led by BMW, CNH Industrial, Ford Motor Company, Jaguar Land Rover, Penso Consulting, Westfield Sportscars and Williams Advanced Engineering, cover a wide range of innovations including:

• development of a high power battery suitable for high-performance vehicles;

• a project to address gaps in and strengthen the UK supply chain;

• the development of the fuelling system for a concept gas tractor; and

• technologies to reduce the weight and improve electrification in SUV vehicle platforms.

A further seven projects have won funding from the government’s Office for Low Emissions Vehicles (OLEV) to advance the development of a range of ultra-low and zero emissions vehicle technologies in the UK. These projects will be led by Equipmake, Ford Motor Company, Great British Sports Cars, Jaguar Land Rover, Ricardo Innovations, Romax Technology and Wrightbus.

In a fresh commitment to supporting these technologies, the government is has also announced that people buying an electric vehicle will continue to benefit from up to £4,500 off the cost of an ultra-low emission car, up to £2,500 off a hybrid and receive £500 towards the installation of a charge point in their home.

Business and energy secretary Greg Clark said: “Low carbon and driverless cars are the future and as a Government we are determined through the Industrial Strategy to build on our strengths and put the UK at the forefront of this revolution. Investment in this technology is an integral part of this Government’s efforts, to ensure the UK auto sector remains competitive and world-leading.

“The projects being awarded funding today will help extend our excellence in these cutting edge research fields, helping to safeguard jobs while ensuring the UK remains the go-to destination for automotive excellence.”

Transport minister John Hayes said: “I am absolutely committed to improving air quality and reducing pollution in towns and cities, which is essential for people’s health and the environment.

“This government is investing £109m to support British businesses in developing innovative, important technologies which will greatly reduce our emissions footprint.

“The number of ultra-low emission vehicles on our roads is at record levels and our renewed support for these exciting technologies is yet another significant milestone.”