Research Allowance for Automotive
& Mobility

Industry-Specific Requirements in the Automotive Sector

The automotive industry generates extensive technical documentation through its strict quality standards, which can be ideally leveraged for the Research Allowance. Companies with IATF-16949 certification already have structured development processes following the Automotive SPICE model or V-model. The required evidence – FMEA analyses, Design Validation Plans (DVP&R), PPAP documentation, and Measurement System Analyses (MSA) – significantly overlap with the R&D evidence required by BSFZ. We help suppliers efficiently prepare this existing documentation for the funding application.

The development of ADAS systems (Advanced Driver Assistance Systems) and automated driving functions is a prime example of eligible R&D. Sensor fusion (LiDAR, radar, camera), environment model development, machine learning algorithms for object recognition, and validation through Hardware-in-the-Loop (HiL) and Software-in-the-Loop (SiL) simulation generate significant eligible personnel costs. Development of test scenarios according to ISO 21448 (SOTIF) and validation per ISO 26262 (Functional Safety) are also recognized as experimental development.

Powertrain electrification offers broad funding opportunities: battery cell chemistry optimization, thermal management of high-voltage storage, development of power electronics (inverters, DC/DC converters), e-machine design, and integration of 800V architectures. For suppliers transitioning from internal combustion engine to e-drive components, the associated R&D costs are particularly eligible, as they are entering technological new territory.

Homologation tests and type approvals under UNECE regulations generate systematic test data that can serve as R&D evidence. Crash simulations, EMC tests per CISPR 25, climate chamber testing, and endurance testing on test benches document the experimental nature of the development. Automotive suppliers frequently underestimate the funding potential of their testing activities – our industry experts systematically identify all eligible areas.

Typical Eligible Automotive Projects

The automotive industry is undergoing the most profound transformation in its history: electrification, autonomous driving, connectivity, and new materials are driving massive R&D investments. The Research Allowance offers OEMs and suppliers tax-based refinancing of these expenditures. Below, we present four key project types that are regularly recognized as eligible.

1

Sensor Fusion for Autonomous Driving

Developing robust sensor fusion algorithms for automated driving functions is a core area of eligible automotive R&D. Typical projects include researching multimodal fusion architectures that merge data from lidar, radar, camera, and ultrasonic sensors into a consistent environment model in real time, developing learning-based object recognition systems that work reliably under adverse weather conditions (fog, glare, snow), and designing probabilistic tracking algorithms for following occluded road users. A Tier-1 supplier supported by NOVARIS developed a novel fusion approach based on a Transformer model that directly fuses raw sensor data from different modalities – without prior individual detection (early fusion). The technical uncertainty lay in whether this approach could achieve the functional safety required for ASIL-D while maintaining real-time capability on automotive embedded hardware (under 100 ms latency). The project was fully recognized as experimental development.

Battery Cell Chemistry and Energy Storage R&D

Research on next-generation battery technologies offers substantial funding potential. Eligible projects include developing new cathode materials (e.g., nickel-rich NMC variants with improved cycle stability or cobalt-free alternatives), researching solid-state electrolytes with higher energy density and improved safety, and optimizing silicon-based anode materials that maintain high cycle life despite volume expansion during charging. Technical uncertainty in battery research is particularly pronounced: whether a new material system achieves the required combination of energy density, power density, lifetime, and safety can only be assessed after extensive experimental investigation. NOVARIS supports automotive suppliers and battery manufacturers in presenting process development work (e.g., researching new electrode coating processes or innovative stacking and joining techniques) as eligible.

2

3

Lightweight Construction with New Materials and Joining Methods

Vehicle weight reduction through innovative materials and design principles is a traditionally strong R&D area in the automotive industry. Eligible activities include researching fiber-reinforced composites (CFRP, GFRP) for structural components with integrated functions (e.g., sensors, conductor paths), developing novel joining methods for multi-material designs (steel-aluminum-plastic), such as friction stir welding, structural bonding, or laser beam welding with adaptive process control, and topology optimization considering crash-relevant load cases and manufacturing constraints. An automotive supplier developed, with NOVARIS support, a novel hybrid component made from press-hardened steel and short-fiber-reinforced thermoplastic, joined by a patented joining concept. The experimental uncertainty concerned the long-term durability of the joint under thermal cycling and corrosion exposure – an aspect that was convincingly documented as R&D.

V2X Communication and Connected Vehicle Architectures

Developing Vehicle-to-Everything (V2X) communication systems opens a broad field of eligible R&D. Typical projects include researching hybrid V2X protocols combining DSRC (IEEE 802.11p) and C-V2X (based on 5G NR) to ensure both low latency and high range, developing cooperative driving functions (e.g., platooning, cooperative intersection assistance) based on real-time V2X data, and designing cyber-secure communication architectures with PKI-based authentication and anomaly detection in the vehicle network. The technical uncertainty regularly concerns whether the required communication reliability (under 10 ms end-to-end latency at 99.99 % availability) can be guaranteed even in highly dynamic traffic scenarios with numerous competing transmitters. NOVARIS supports automotive companies and suppliers in precisely delineating eligible protocol research from routine implementation of existing standards.

4

Our tip: Tier-2 and Tier-3 suppliers also benefit from the Research Allowance. Developing novel sealing systems, innovative cooling concepts for power electronics, or advanced surface treatments can be just as eligible as the lighthouse projects mentioned above. In a complimentary initial consultation, we review your entire development portfolio.