The West Midlands will become the UK’s first Future Mobility Area, receiving £20 million of Government funding.
Transport for West Midlands will trial new modes of transport, services and technologies – including car sharing and electric bikes.
Andy Street, the region’s mayor, announced scheme at the Conservative Party Annual Conference.
"I am delighted that today the government is announcing that the West Midlands will be the first ‘Future Mobility Area’ in the UK.
"This is a sector where we lead the world. Autonomous vehicles are being tested in Birmingham, electric taxis manufactured in Coventry, and Range Rovers are sold around the globe.
"The Future Mobility Area will make sure the residents of the West Midlands can travel around the region as quickly, easily and cheaply as possible,” he said.
BVRLA chief executive Gerry Keaney, added: “We are delighted by the announcement of the first future mobility city by Andy Street today. We look forward to working with the Mayor on new and innovative schemes including our mobility credits proposal. Our industry is the fastest way to cleaner air and we will continue to work with central and local government to deliver on this key priority.
“The fleet sector is determined to play a lead role in tackling air pollution and this announcement has the potential to dramatically improve the sustainability of road transport in the West Midlands.
“We believe that this announcement must be the start of a wider transition in urban transport and we look forward to collaborating with the West Midlands and other local authorities in delivering this.”