The latest investment at the centre - made jointly by government and industry - will see groups led by McLaren Automotive, Jaguar Land Rover, Turner Powertrain and Dearman, amongst others, develop a range of technologies aimed at reducing the carbon emissions of vehicles.
The projects - ranging from boosting and electrical assistance to improve engine efficiency, transfer of transmission technology from road to off highway vehicles to the light-weighting of propulsion systems - are forecast to create or safeguard 1200 jobs.
In one project McLaren will lead a team looking at delivering improvements in thermal system efficiency using a modular combustion system, whilst elsewhere, liquid nitrogen engine developer Dearman will head up an effort to refine its technology for combined cooling and power applications.
Another consortium, led by Turner Powertrain, a subsidiary of Caterpillar, plans to develop a continuously variable hydrostatic transmission and flywheel energy storage system for off highway machines and construction equipment.
Climate Change and Industry Minister Nick Hurd said: “The funding announced today underlines the government’s confidence in this growing sector, which brings with it exciting new opportunities for the automotive industry.
Jon Beasley, director of Technology and Projects at the APC stated: “This latest announcement of £42m grant funding is a vote of confidence to UK automotive industry. It shows despite recent challenges the UK is still very much open for business and that government is committed to the promotion of low carbon technologies.
"APC 5 is full of exciting new technologies with the potential to dramatically reduce CO2, developing as well as anchoring capability in the UK and safeguarding jobs and skills."
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