Government Backs Green Cars Production With GBP10m Loan For Tata Motors

Mon, 21 Sep 2009

The government has announced it will lend £10 million to Indian carmaker Tata Motors to support the production of electric vehicles in the UK.

The £10 million loan is the first to be awarded under the government’s Automotive Assistance Programme (AAP), which is designed to encourage low-carbon vehicle production.

It will go towards Tata's £25 million plan to manufacture the Tata Indica Vista four-seat electric vehicle in England – a move which is set to create hundreds of jobs over the coming years.

Commenting on the financial support, Business Secretary Lord Mandelson said: "The government is determined to help the car industry to exploit fully the opportunities offered by green manufacturing. Today we are backing Tata as Tata backs Britain."

"This loan will strengthen our electric vehicle manufacturing expertise, securing and creating high value engineering jobs in the West Midlands."

"Tata will continue to invest in R&D in the next generation of sustainable transport, helping it become a lead player in this exciting and important technological area."

In a statement, Tata said: "Tata appreciates the £10 million loan, under the UK government’s automotive assistance programme to develop and manufacture the Tata Indica Vista Electric Vehicle in the UK with an investment of £25 million."

The Indica Vista EV was launched in India last year and will go into production by the end of the year.

Tata, which owns Jaguar Land Rover, confirmed that the four-seater electric car will have a range of 124 miles and a top speed of 65mph.
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