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The Government has pledged an additional £100 million to support the research and development of driverless car technology in the UK.
The extra funding is in addition to the £10m already announced which is supporting driverless car trials with three projects in the UK which are already underway.
Chancellor George Osborne, said the funding would ensure the UK "stays ahead in the race to driverless car technology".
The £100m will support the driverless car trials already going ahead and will also help to fund the necessary infrastructure and support for autonomous vehicles, including the communication technology to help improve car to car and car to infrastructure development.
Mike Hawes, SMMT chief executive, said: "The £100 million injection into connected car research, development and testing - to be matched by industry - will provide a vital boost to the UK automotive industry and put us ahead in the global race to build the cars of the future.
"It is tremendous news that Government has adopted SMMT and industry's call for this investment - it lays the foundations for the UK to become a centre of excellence in intelligent mobility, and underlines the importance of automotive engineering to the UK economy."
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