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R&D in Motor Vehicle companies

Industry Spotlight

How might Motor Vehicle companies qualify for R&D tax relief?

Motor vehicle companies are constantly innovating to improve the performance, safety and environmental impact of their products. Research and Development (R&D) plays a critical role in this process, as these companies invest heavily in the development of new technologies, materials and processes. By engaging in R&D activities, motor vehicle companies can not only stay competitive in a rapidly changing industry but also qualify for R&D tax relief. Motor vehicle companies may carry out R&D activity in various ways, including

R&D can be employed to develop and enhance alternative fuel and electric vehicles. This includes researching and optimizing powertrain systems, battery technologies and charging infrastructure to improve efficiency, extend range and reduce emissions in line with sustainable transportation goals.

R&D plays a crucial role in the development of autonomous driving technologies and ADAS. This involves researching and refining sensor technologies, artificial intelligence algorithms and vehicle communication systems to enhance safety, reliability and the overall driving experience.

Motor vehicle companies may also collaborate with other companies or academic institutions to share knowledge and resources, and to develop new technologies or products. 

For example, collaborating with a university to develop new materials for vehicle construction.

Motor vehicle companies may also conduct research on new materials that can improve the strength, durability, or weight of their vehicles.

For example, researching new lightweight materials that can improve fuel efficiency or developing new alloys that can improve the strength of the chassis.

Motor vehicle companies may invest in R&D to design and develop new vehicle models that can better meet the needs of customers. 

For example, designing a new sports car or developing a new SUV model.

Motor vehicle companies may develop new technologies that can improve the performance, efficiency, and safety of their vehicles.

For example, developing electric or hybrid engines, or developing autonomous driving technologies

Motor vehicle companies may also work on improving existing technologies to make them more reliable, efficient, or cost-effective.

For example

  • Improving engine efficiency
  • Developing better brakes or tires
  • Improving fuel injection systems.
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Has your company engaged in this type of activity in the past?

If you believe your motor vehicle company could benefit from R&D tax relief, please do not hesitate to contact us today.

Our team of experts is here to help you navigate the complexities of research and development tax relief and ensure that you receive the maximum benefit for your innovative work.

Get in touch today to book a FREE discovery call.

R&D Tax Relief

From initial discovery call and information gathering through to claim preparation, supporting documentation and submission. We're your expert partner in R&D tax relief submissions.


For larger companies we can support claim preparations under the RDEC (Research & Development Expenditure Credit) scheme, ensuring robust, defensible and maximised claims .

HMRC Enquiry Support

We'll liaise with HMRC on your behalf, ensuring no unnecessary delays on receiving your claim and no unfair reductions. This service is provided as standard for our clients.

R&D Claim Review

If you're making an R&D tax relief claim, our team can help ensure you're compliant with the latest legislation and identify any potential claim uplift. Speak to our team for more information.

Partner Program

If you work with innovative businesses and you're interested in partnering with us to ensure your clients are maximising their R&D tax relief, speak to our partner program lead.

Accountancy Services

Through BC&A Chartered Accountants, we offer a range of accountancy services including company formations, business planning, taxation and compliance services and more.