India On the Move: U.K. Grants Tata Motors $16.3-Million Loan for EV Plant

Britain's first government loan under new program to help boost automotive production and manufacturing goes to India's Tata Motors, for an assembly plant for its new line of electric cars.

Tata, which is preparing to launch European sales of a battery-electric version of its 4-seat Indica hatchback (right), has said earlier this month that its first factory would be in Norway with a British plant to follow if a government loan could be obtained.

This week, Britain's business secretary, Peter Mandleson, said Tata would get a loan of 10 million pounds ($16.3 million), the first from the 2.3-billion ($3.7 billion) loan fund.

Tata hasn't announced a plant site for the Indica EV, but analysts at IHS Global Insight say it is expected to choose a locale in central Britain near its existing Tata European Technical Center at the University of Warwick.

Global Insight reports that the U.K. automotive assistance program is in funding talks with 17 other companies.

Posted by

John O'Dell September 21, 2009, 9:13 AM

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India, Plug-ins and Electric, Tata

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Electric cars, EVs, Indica EV, Tata Indica, Tata Motors