Tata Wants 100m Pounds for Jaguar Land Rover

Indian carmaker Tata Motors is looking to raise around 100 million pounds for its Jaguar and Land Rover brands, hoping to cover the lost posted by these two specific units in the previous fiscal year. Tata reported a net loss of 41 million pounds for the quarter that ended in June, down from the 80 million pounds profit revealed in the same period of the previous year.

According to, Tata has already revealed that it received the approval of commercial banks, including Standard Chartered, Bank of Baroda, ING, GE Capital, and Bank of Ireland subsidiary Burdale, for the 100 million pounds loan. But the question still remains: is Tata Motors capable to revive Jaguar Land Rover using only 100 million pounds? Analysts say no.

Ashvin Chotai, director of consultancy Intelligence Automotive Asia, told the Financial Times that Jaguar Land Rover is more difficult to be revived and the parent company might need more funds to do it.

“We’ve seen the bottom of the luxury market, but the road to recovery will be slow,” he said. “JLR will continue to be a drain on Tata’s financial resources for a while.”

Tata Motors announced earlier this month that it managed to secure private funding for JLR, a step applauded by the UK government who also offered its support for the Indian manufacturer.

“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.
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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