Referral of the proposed Automotive Transformation Grants scheme by the Department for Business and Trade
Source: gov.uk (2025-06-24)

The Subsidy Advice Unit (SAU) has published a report providing advice to the Department for Business and Trade (DBT) concerning its proposed Automotive Transformation Grants scheme.

Administrative timetable

Final report

24 June 2025: The SAU has published its report providing advice to DBT concerning the proposed Automotive Transformation Grants scheme. The report sets out the SAU’s evaluation of DBT’s Assessment of Compliance of its proposed scheme with the requirements set out in the Subsidy Control Act 2022.
- Final report (https://www.gov.uk/government/publications/report-on-the-proposed-automotive-transformation-grants-scheme) (24.6.25)
Request from the Department for Business and Trade

13 May 2025: The SAU has accepted a request for a report from DBT concerning the proposed Automotive Transformation Grants scheme (the Scheme). This request relates to a Subsidy Scheme of Particular Interest.

The SAU will prepare a report, which will provide an evaluation of DBT’s assessment of whether the Scheme complies with the subsidy control requirements (Assessment of Compliance). The SAU will complete its report within 30 working days.

Information about the Scheme provided by the Department for Business and Trade

The Automotive Transformation Grants subsidy scheme has the purpose of providing capital funding to support the industrialisation of zero-emission vehicle technologies, including vehicle manufacturing. It will create high-value jobs, attract private investment, and drive emissions reductions.

Project proposals must focus on large-scale, transformative, zero-emission-focused capital investment for the automotive industry. Proposals are expected to be centred around a proven product or process that has been demonstrated as economically and technically feasible. Applicants must undertake project work in the UK and exploit the results/benefits from or within the UK.

Individual subsidy amounts to be given under the Scheme: between £1 million and £100 million. Maximum subsidy ratio (of total project costs) given under the Scheme: 25%.

Subsidy to be calculated via assessment considering (not exclusively) the case for assistance; minimum necessary; and economic value for money analysis.

Information for third parties

If you wish to comment on matters relevant to the SAU’s evaluation of the Assessment of Compliance concerning the proposed Automotive Transformation Grants scheme, please send your comments by the date stipulated in the timetable above. For guidance on representations relevant to the Assessment of Compliance, see the section on reporting period and transparency in the Operation of the subsidy control functions of the Subsidy Advice Unit (https://www.gov.uk/government/publications/guidance-on-the-operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit/operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit).

Please send your submissions to the public authority: xxx@xxx.xx (mailto:xxx@xxx.xx)

Please also provide a contact address and explain in what capacity you are making the submission (for example, as an individual or a representative of a business or organisation)

Notes to third parties wishing to make a submission

The SAU will only take your submission into account if it can be shared with DBT. The SAU will send a copy of your submission to DBT together with its report. This is to allow the public authority to take account of the submission in its decision as to whether to make or modify the scheme or its assessment. We therefore ask that you provide express consent for your full and unredacted submission to be shared. We also encourage you to share your submission directly with DBT using the email address provided above.

The SAU may use the information you provide in its published report. Therefore, you should indicate in your submission whether any specified parts of it are commercially confidential. If the SAU wishes to refer in its published report to material identified as confidential, it will contact you in advance.

For further details on confidentiality of third party submissions, see identifying confidential information in the Operation of the subsidy control functions of the Subsidy Advice Unit (https://www.gov.uk/government/publications/guidance-on-the-operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit/operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit).

Contacts
- CMA press team: xx-xxxx-xxxx or xxx@xxx.xx (mailto:xxx@xxx.xx)