Tata Motors has threatened that they will scrap plans to launch Vista electric cars in the UK if it does not receive a £10 million loan from the British government soon.
The company is furious after being told by officials from (Secretary of State for Business, Innovation and Skills) Lord Peter Mandelson’s business department that it needed more time to find out if the venture will be considered for the loan — taking the total wait to six months.
The Vista electric-car
Tata Motors registered its expression of interest to apply for the £10 million loan last April, to help launch the Vista electric vehicle and build an assembly for the vehicle i the UK. The Vista electric vehicle was unveiled at the Geneva Motors Show this year.
No money has been provided by the government from its £2.3bn package which is made up of loan guarantees and loans for car makers wanting to invest in fuel efficient technologies. The $2.3 billion package was unveiled in January. Tata Motors remain in deadlock in talks with the department over securing support for luxury cars JLR.
Tata Motors’ Norwegian subsidiary, Miljo, has got a six million pound loan and a one million pound grant from the Norwegian Government for electric vehicles.