Low carbon vehicles: investment to reap rewards for businesses
New research reveals forecast ROI up to x34 over 15 years in projects funded through Innovate UK's Low Carbon Vehicles Innovation Platform.
A new research report highlights the impact of the Low Carbon Vehicles Innovation Platform on the UK economy. The impact review was launched today at the CENEX LCV 2015 motor industry event.
It reveals that:
- every £1 invested by the LCV IP is forecast to return £20 - £34 over 15 years
- businesses estimate annual sales increases of £2.9 billion over 15 years
- £41 million investment support is forecast to add £820 million over 15 years
- businesses forecast they will create or protect up to 12,000 jobs over the next 15 years
- business attract private investment of more than 5 times the initial grant
- businesses have made capital investment of more than £519 million since completing their projects
The LCV IP was set up in 2007. It works with the automotive industry to develop new technologies to increase energy efficiency, reduce emissions and optimise vehicle use. The LCV IP receives funding and support from Innovate UK, the Office for Low Emission Vehicles, the Department for Business, Innovation and Skills and the Engineering and Physical Sciences Research Council.
Roland Meister, Head of Transport at Innovate UK said:
Innovate UK provides consistent support to the sector, working with an industry-led advisory panel to help shape the technological direction and priorities for the Low Carbon Vehicles Innovation Platform.
We’re helping to drive forward economic growth in this highly productive sector already rich in export success. This is what our work is all about and the sector is a prime opportunity for patient investors.
The review focused on the 77 LCV projects completed up to 1 July 2014. These projects represent £79 million of funding from Innovate UK and partners. Around 170 representatives from industry and higher education took part. This represented 85% of the funds awarded.