The government has announced a £10 million loan to Tata to support the manufacturing of electric vehicles in the UK.
The loan has been awarded under the automotive assistance programme and Tata, the Indian firm which owns Jaguar Land Rover, will invest £25m into producing the Tata Indica Vista four-seat electric vehicle.
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.”
The Indica Vista was launched in India last year and it will go into production by the end of the year. It has a range of 124 miles and has a top speed of 65mph.