Leading car maker Jaguar Land Rover has joined forces with academics to develop the driverless cars of the future.
The £11 million programme is also being part funded by the Engineering & Physical Sciences Research Council and will be spent around five projects across the UK.
It is hoped the research will play an important role in showcasing the benefits of autonomous driving and the role in could play in improving road safety.
Dr Wolfgang Epple, director of research and technology at Jaguar Land Rover, hopes the results will help realise the potential of driverless vehicles and reassure pedestrians and other road users.
"These collaborative projects will bring some of the UK's leading academics together with our autonomous driving team to address the fundamental real-world challenges that are part of our journey towards autonomous driving," added Mr Epple.
Toyota recently confirmed a £33 million investment project into designing smart cars and driverless vehicles, while a number of other key automotive companies, such as Ford have also stressed their desire to research the technology further.