The Government today announced a £10 million loan to Indian company Tata Motors to make electric cars in the UK.

The loan, part of a scheme backing low carbon technology in the car industry, will support a £25 million investment by Tata Motors in its West Midlands-based European Technical Centre (TMETC) to develop and manufacture the green vehicles.

The company has developed a four-seater electric car, with a range of up to 125 miles before needing to be recharged and a top speed of 65mph, which will go into production before the end of the year.

Business Secretary Lord Mandelson said the loan would secure and create engineering jobs in the West Midlands, where TMETC employs around 180 people.

He 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 research and development in the next generation of sustainable transport, helping it become a lead player in this exciting and important technological area."

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