According to a report released by the UK based Guardian, Tata Motors will ditch plans to build and sell electric cars in the UK if it does not receive its loan from the country.
After being told that the UK government needed more time to determine if Tata would be a solid choice for loans from the the business department of the UK, Tata responded furiously. Outraged after having to wait nearly six months for the anticipated loans, Tata has responded by stating that if the loans do not come through soon, their entire EV plan in the UK will be scraped completely.
Back in April, Tata Motors registered to receive the loans from the UK. The loans total around 10m pounds. The purpose of the loans is to allow Tata to launch the new Vista EV and also build an assembly line for the vehicle in the UK.
Several delays have postponed Tata from receiving the required money to build the vehicle and assembly line. Just days ago, they were told that it would be at least 8 more weeks before the business department of the UK would decide if Tata would receive the loans.
The UK has kicked off several plans for clean vehicle technology and many of the plans include billions in loans available for numerous companies. Tata was an early applicant for loans, but now feel as though they have been slighted. They stated that they feel like they have to jump through hoops to satisfy the UK.
Additionally, Tata is still waiting for approval on loans secured from the European Investment Bank in April to support the purchase of Jaguar Land Rover. The loans were given to Tata, but they must meet approval from the government of the UK and this has still not occurred.
Tata Motors is running out of patience at this point and the lack of decision making by the UK may drive them away. The relationship between the country and Tata has dwindled and Tata now feels as if they will be overlooked.
Source: Guardian
