Tata Motors European Technical Centre (TMETC) has been given a £10m loan from the UK government under the Automotive Assistance Programme (AAP).
The £10m will be complemented by £25m of investment from Tata Motors, which will be used to assist with the development and manufacture of electric vehicles in the UK.
Located in the West Midlands, the TMETC was established by Tata Motors in September 2005 and is engaged in advanced automotive technology and vehicle product development. It employs around 180 people.
Lord Mandelson, business secretary, said: 'This loan will strengthen our electric-vehicle manufacturing expertise, securing and creating high-value engineering jobs in the West Midlands.'
Tata Motors has developed a four-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). It will be in production before the end of 2009.
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