Tata Motors planning to raise working capital for Jaguar and Land Rover

Article by Christian A., on August 26, 2010

Working on the belief that only a revival of the market for luxury cars could turn around the business, Tata Motors announced that it is planning to raise at least £100 million of working capital for Jaguar and Land Rover. 

Ravi Kant, the Indian carmaker's vice-president, confirmed that Tata Motors was finalizing the £100 million of loans from commercial banks including Standard Chartered, Bank of Baroda, ING, GE Capital, and Bank of Ireland subsidiary Burdale.

Tata has been heeding cost-cutting advice from outside consultants but is seeking the loan to revive its luxury cars segment. 

Tata Motors reported a net loss of £41 million for the quarter to end-June, compared with a £80 million profit a year ago. Of this, Jaguar and Land Rover lost £110 million before tax in the quarter.

Analysts are saying however that the loans Tata is aiming for won´t be enough and that it would take much more than £100 million to turn around JLR.

Ashvin Chotai, director of consultancy Intelligence Automotive Asia, said that while the luxury market has bottomed out, the road to recovery would be slow. Chotai expects that JLR will continue to be a drain on Tata's financial resources for a while.

If you liked the article, share on:

Pin It

Comments

Recommended

South Korean car company SsangYong recently revealed sketches of their upcoming SUV. We’re not always impressed by Korean car designs, but this one looks quite promising. Yup, it is the...
by - March 26, 2017
Twenty-eight years after the company was first launched by Toyota, which was initially targeted to the United States market only, Lexus has already made its way to over 70 countries....
by - March 26, 2017
Last year was probably Porsche’s best year ever in terms of sales. Their factory in Stuttgart delivered 237,778 cars in total, which represents a six percent increase compared to the...
by - March 26, 2017
Lamborghini has disclosed that it is looking into the possibility of releasing electric vehicles. With the Volkswagen Group revealing that it will be releasing electric vehicles within several years, there...
by - March 25, 2017
Daimler AG, through its Smart division, has disclosed that its two electric models, the Smart ForTwo and the Smart ForFour are now open for orders in Germany. Official market launch...
by - March 25, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries