Innovate UK Automotive Fund is a Grant

https://apply-for-innovation-funding.service.gov.uk/info/terms-and-conditions

https://www.ukri.org/opportunity/automotive-transformation-fund-round-18/ 

I have submitted the application form but should have read the terms and conditions before submitting. Maybe I should amend it. Still not too late.

I realise that this fund is not a loan but a grant. It means that we can use it to subsidise the prices of the products that we produce. The products can even be for export. We can sell the car for free all over the world.

Before you complain about unfair competitive practises, it should be noted that no subcontracting is allowed. Not sure about materials. Whatever subsidy the receiver of the grant receives, can be used to lower the prices of their products. Because the products are sold in UK, using UK labour, it is a fair use of the tax payers money. As long as the products are sold in UK to UK tax payers.

The prices of products are determined by the manufacturer. If the manufacturer sells at a high price, it is within its right. It will make more money to the shareholders of the company. It may mean less products sold, because prices are high. Unless the products are so much in demand, like Tesla.

Tesla is highly vertically integrated. It manufactures almost all of its parts and therefore no subcontracting at all. If Telsa were to get this 2 billion pound grant, Tesla will be able to make cars in UK for free. Tesla will be stupid not to apply for this grant. So are all other electric car manufacturers.

One condition may limit applicants. The technology has to be innovative. How about Cybertruck? Nobody has built any stainless steel exoskeleton. The funding may be limited to the production of the stainless steel exoskeleton in UK. Still, the cost saving is immense to Tesla.

The lack of publicity for this fund is very strange indeed. I managed to find it by luck. As a start-up, we are always looking for cheap funds.