UK government has collaborated with the county's automotive industry to make GBP1m investments in an advanced propulsion centre (APC) over the next ten years.
Both the government and automotive industry will invest GBP500m each in the APC in order to research, develop and commercialize the technologies for the future vehicles.
The government expects the strategy to increase its share of the value chain and provide it a lead in the research and development of low carbon vehicles over the next 20 to 30 years.
UK Business Secretary Vince Cable said the country's automotive sector has been incredibly successful in recent times, with billions of pounds of investment and new jobs.
"With the next generation of vehicles set to be powered by radically different technologies we need to maintain this momentum and act now," Cable said.
"Our industrial strategy will ensure we keep on working together to make our automotive industry a world leader."
The investment is part of 'Driving success', an industrial strategy for growth and sustainability in the UK automotive sector published jointly by the government and industry.
With the move, the Automotive Investment Organization of the country expects to increase the number of jobs created in the automotive supply chain through Foreign Direct Investment over the next three years by two times to 15,000.
