Tata Vista launch in UK could be stopped

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Tata was all set to launch its Vista electric car in the UK, but now it has threatened to pull out following the its failure to receive loans from the government to the tune of 10 million pounds. The car was unveiled at the Geneva Motor Show earlier this year and Tata had planned to manufacture it in the UK.

Recently, however, the company was told that it will take another eight weeks for the business department to decide whether it had met the necessary criteria and can be considered for the loan, according to a report in The Observer.

If Tata does not receive the necessary funding, it may well stop production of the Vista because it has already been stonewalled by the government for the Jaguar Land Rover car which has still to guarantee the loan of 292 million pounds which Tata was supposed to receive from the European Investment Bank. The government is exercising abundant caution after having burnt its fingers with the MG Rover fiasco.