The loan marks Jaguar Land Rover’s first debt financing in China. Like many other OEMs, the carmaker has been badly impacted by the coronavirus crisis. Sales from China used to account for 25 to 30% of JLR`s global sales, but over the past two months make up 50%, according to Arthur Yu, Vice President and Chief Financial Officer, JLR China. The company, which also imports cars and has a manufacturing partnership in Changshu, eastern China, with Wuhu-based Chery Automobile, said its China sales in April were level with the same month in 2019, and it saw sales growth in May. Yu said JRL expects sales of China`s luxury car segment this year to be level with last year or see slight growth. The Chinese lenders are said to include Bank of China, ICBC, China Construction Bank, Bank of Communications and Shanghai Pudong Development Bank.

In the UK, JLR is allegedly seeking a £1 billion (US$1.26 billion) loan from the government as part of its emergency lending scheme, plus a further billion in subsidies and tax breaks, but those figures remain speculative and have not been confirmed by the company. Parent company Tata Motors is also reportedly seeking a strategic partner for its British business.

Sources: Reuters/Motor 1