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Robots powered by 'blackbox' models need to provide human-understandable explanations which we can trust. Hence, explainability plays a critical role in trustworthy autonomous decision-making to foster transparency and acceptance among end users, especially in complex autonomous driving. Recent advancements in Multi-Modal Large Language models (MLLMs) have shown promising potential in enhancing the explainability as a driving agent by producing control predictions along with natural language explanations. However, severe data scarcity due to expensive annotation costs and significant domain gaps between different datasets makes the development of a robust and generalisable system an extremely challenging task. Moreover, the prohibitively expensive training requirements of MLLM and the unsolved problem of catastrophic forgetting further limit their generalisability post-deployment. To address these challenges, we present RAG-Driver, a novel retrieval-augmented multi-modal large language model that leverages in-context learning for high-performance, explainable, and generalisable autonomous driving. By grounding in retrieved expert demonstration, we empirically validate that RAG-Driver achieves state-of-the-art performance in producing driving action explanations, justifications, and control signal prediction. More importantly, it exhibits exceptional zero-shot generalisation capabilities to unseen environments without further training endeavours.