Transport Secretary Philip Hammond announced £24 million will be pumped into six low carbon vehicle projects, with a further £28 million coming from businesses.
The Jaguar Land Rover project includes designing, building and testing hybrid technology for its future range of cars. The UK based marque’s have already designed a number of hybrid and electric vehicles including a future hybrid Range Rover Sport and a ‘green’ XJ prototype named ‘Limo-Green’.
Hammond said: "I am determined to make this Government the greenest ever and transport will have a key role to play. But this will not be achieved by forcing people off the road – it’s not the car that’s the problem, it’s the carbon."
With 84 per cent of all car journeys taken by car in the UK, the government is keen to improve hybrid and electric technology, starting with the green car scheme offering at least £5,000 off electric cars from January 2011 while funds last.
"We are on the brink of a technological revolution that will transform the way we see motoring in the 21st century allowing the benefits that the private car delivers without destroying the planet in the process," Hammond concluded.
British brands Jaguar and Land Rover are traditionally two of the worst performing brands for CO2 emissions because of the size of the models in both ranges.
However, the recently introduced Range Rover Evoque is the smallest, lightest and most efficient model yet, signalling a change in direction for the manufacturer.
Labelling Jaguar Land Rover as ‘an exciting example of the breadth and depth of the UK’s technical capabilities, Business Minister Mark Prisk added: "Collaboration between UK-based vehicle manufacturers, supply chain companies and academia will help Britain become one of the leading centres for the design, development and manufacture of ultra-low carbon vehicles."