The British Government has announced a loan package of £ 10 Million towards the electric car-manufacturing project of Tata Motors in the UK.
The loan is a part of the scheme backing low-carbon technology in the motor industry. The loan will support the £ 25 Million investment by Tata Motors in its West Midlands base.
Tata Motors had threatened to scrap plans to build electric cars in the UK in July, if it did not receive a £ 10 Million loan. The Indian car company was furious after being told by officials from Mandelson's Business Department that it needed more time to find out if the venture will be considered for the loan, taking the total waiting time to six months.
In April, Tata Motors registered its expression of interest to apply for the £ 10 Million loan to help launch the new Vista electric car and build an assembly line for it in the UK. Tata Motors' Norwegian subsidiary, Miljo, has already been awarded a £ 6 Million loan and a £ 1 Million grant from the Norwegian Government for the Vista electric cars to be rolled out in Norway.
Tata Motors' European subsidiary, Tata Motors European Technical Centre (TMETC), is engaged in design, engineering and development of automobiles and works synergistically with Tata Motors R&D centres in Pune, Lucknow, Jamshedpur and Korea. It has 180 employees.
Tata Motors European Technical Centre plc (TMETC) appreciates the £10 million loan, under the UK government's Automotive Assistance Programme (AAP), to develop and manufacture the Tata Indica Vista Electric Vehicle in the UK with an investment of £25 million. The Tata Indica Vista EV will be the first four-seater electric car with a range of up to 200 km to become available this year in Europe.
TMETC is a wholly owned subsidiary of Tata Motors in the UK, engaged in design engineering and development of automobiles, working synergistically with Tata Motors.