Tata Motors has announced it's planning to raise at least £100 million of working capital for Jaguar and Land Rover.
Ravi Kant, the Indian carmaker’s vice-president, also said that cost-cutting advice from outside consultants was bearing fruit - but added that only a revival of the market for luxury cars could turn around the business.
Tata Motors reported a net loss of £41m for the quarter to end-June, compared with a £80m profit a year ago. Of this, Jaguar and Land Rover lost £110m before tax in the quarter.
Kant said that Tata Motors was finalising the £100m of loans from commercial banks including Standard Chartered, Bank of Baroda, ING, GE Capital, and Bank of Ireland subsidiary Burdale.
However, analysts told the Financial Times newspaper that it would take much more than £100m to turnround JLR’s fortunes.
“We’ve seen the bottom of the luxury market, but the road to recovery will be slow,” said Ashvin Chotai, director of consultancy Intelligence Automotive Asia. “JLR will continue to be a drain on Tata’s financial resources for a while.”