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Jaguar Land Rover owned by India’s Tata Motors has secured a loan of 5 billion yuan ($704.5 million) from China, according to media reports.
The loan is to ease the financial strains on the company owing to Covid-19. The company has secured a loan from China under a three-year revolving credit facility. The money had been secured from lenders including Bank of China, ICBC, China Construction Bank, Bank of Communications and Shanghai Pudong Development Bank.
The coronavirus pandemic has hit car sales as well as automakers supply chains leading to a major financial setback for carmakers across the globe, Reuters reported.
The company had already been under financial stress. For instance, JLR had previously furloughed half of its employees in the UK as factories were forced to shut owing to the lockdown. The company had already cut production at its Halewood facility even before the crisis began due to weaker sales, the Guardian reported.
The move will help secure the company’s short term cash needs during the crisis, especially for JLR China, Reuters reported.
The company has also entered into a partnership with China-based Chery automobile. It also added that it had seen a growth in sales in China in May, the report said.
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