This news mean's the UK's government support is no longer needed for the time being. While the British government "welcomed" the news, it could have also missed a prosperous deal. The Indian automaker and the British government started negotiations not long ago, but Tata Motors reportedly found the financial help conditions too high.
So in an effort to avoid a bad deal with the UK government, the Indian automaker turned to the private sector. “The UK Government's Automotive Assistance Programme has met widespread criticism for delays in the flow of funds to companies”, reported just-auto.com.
“The fact that the banks and commercial capital markets are meeting JLR's funding is a clear sign of confidence in the company, its products and the automotive sector.( This additional funding will allow JLR to invest in future models and successfully launch the new XJ saloon on schedule and updated Land Rover models later this year”, said Peter Mandelson, UK Business Secretary.
"The Government had offered bridging finance from the Automotive Assistance Programme if necessary. We understand the Tata group will now be successful in resolving longer term financial needs but we are willing to help again if necessary. This is a good and encouraging outcome for JLR, its workforce and its supply chain", added Mandelson.