Tata has secured a 340-million pound (around Rs 2,400 crore) loan from the European Investment Bank (EIB) for Jaguar Land Rover to fund the development of hybrid drivetrains and more energy-efficient bodies for its future cars.
The loan has been provided under the European Clean Transport Facility scheme and is a part of JLR’s drive to lower its fleet CO2 emissions. The firm is developing an all-electric XJ and a range-extender hybrid version of the same car, technology which could also be applied to Land Rover models.
The loan with a tenure of eight years did not have any guarantee from Tata Motors as it was taken directly by JLR. Ravi Kant, Tata Europe’s vice-president, said the loan was the latest part of Tata’s plan to secure the future of JLR and strengthen its balance sheet.
“This will support the progress of turnaround in Jaguar Land Rover's business in challenging market conditions, alongside cost-cutting measures, increase of volumes and the improved margins strategy currently being implemented by Jaguar Land Rover,” said Kant.
“We view Jaguar Land Rover as a key part of Tata Motors and we feel confident about its outlook for the future,” he added.
Last year, Tata had secured a 500 million pound loan from various banks an investment groups as part of the firm’s restructuring process.