Jaguar Land Rover has reported a £280m loss in ten months, prompting owner Tata Motors to warn it may have to cut jobs.
Tata also said that further shutdowns were likely at Jaguar Land Rover's factories in Castle Bromwich, Coventry and Solihull.
"There has already been 2000 job losses. We may be looking at more job losses, more plant shutdowns," vice chairman Ravi Kant told a news conference in Mumbai.
Jaguar Land Rover currently employs 14,500 people, having made 450 redundancies at the start of the year.
Tata reported that sales of Jaguars and Land Rovers fell 32 per cent in the ten months to 31 March.
The number of vehicles sold fell to 167,000 from 246,000 a year earlier.
The £280m loss was for the same period, which was Jaguar Land Rover's first 10 months under the ownership of Tata.
A spokesman for Jaguar Land Rover said the firm was continuing talks with the UK government about the possibility of some form of financial assistance.