The government have announced (on 18th September) a £10M loan to Tata Motors European Technical Centre (TMETC) under the Automotive Assistance Programme (AAP) set up to support investment in a lower carbon future for the industry.

The £10M from Government will support £25M of investment from Tata Motors to develop and manufacture electric vehicles in the UK. The award of the AAP loan is a tangible demonstration of the UK government’s commitment to the development of low-carbon vehicles and to the reduction of C02 emissions. The scheme is intended to support companies as they invest in greener products and processes, and this first award under the scheme demonstrates the UK government and industry working together for a lower carbon future.

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. TMETC 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."

Tata Motors has developed a 4-seater Electric Vehicle, based on the Tata Indica Vista passenger car which was launched in India last year. The Indica Vista electric vehicle has a range of up to 200km and a top speed of 104kph (electronically limited) and will be in production before the end of 2009.