Connected and autonomous vehicles will provide huge social, industrial and economic benefits to the UK. This report examines how these innovative vehicles will transform the UK economy – expanding our industrial base, improving safety and congestion, driving up productivity and freeing up space usually devoted to vehicles in our urban areas. In recent years, the UK automotive sector has seen unprecedented growth. Production is up 50% since 2010 (and forecast to grow by a third in the next three years) and vehicle manufacturers have committed over £6 billion of investment to the UK since 2012. The industry is innovating fast. Vehicles are 42% more fuel efficient than they were in 2000 and the UK is seen internationally as a leading centre of automotive R&D. To maintain this position of innovative excellence, the UK must grasp the opportunities presented by the next breakthrough technologies – connected and autonomous vehicles – and secure the benefits for the UK economy and society.