The Government is supporting a project by Tata to build electric vehicles in the UK.
It has granted a £10m loan under the Automotive Assistance Programme (AAP) to Tata Motors European Technical Centre in Coventry to develop low carbon vehicles in Britain.
The cash will support Tata's own investment of £25m in the project.
Tata has developed a four-seater electric vehicle (EV) based on the Tata Indica Vista. It reportedly has a range of 120 miles.