Jaguar Land Rover (JLR), owned by Tata Motors, has received funds worth 5 billion yuan from lenders in China, a Reuters report states. The company has gotten into agreements with banks in China for an unsecured three-year term loan facility of $704.50 million (approximately Rs 5322 crore). This will be JLR’s first debt financing in China. The banks in China that would provide JLR with the three-year revolving loan include Bank of China, ICBC, China Construction Bank, Bank of Communications and Shanghai Pudong Development Bank, according to JLR’s vice president and China chief financial officer Arthur Yu.
JLR’s fundraising comes as the coronavirus pandemic has hit automakers’ supply chains and sales around the world. About 25% to 30% of Jaguar Land Rover’s global sales come from China, but the past two months make up 50%. The loan “can help JLR China better manage cash flow amid the coronavirus epidemic”, Yu told reporters on Friday.
JLR said that its China sales in April were level with the same period last year and it registered an upward trend in sales in May. The company imports cars and also has a manufacturing partnership in the Chinese eastern city of Changshu with Wuhu-based Chery Automobile.
Arthur further adds that Jaguar Land Rover expects sales of China’s luxury car segment this year to be level with last year or see slight growth.
Earlier this month, Tata Motors said that the company had resumed operations at all the plants, with the Jamshedpur plant also getting approval on May 27, 2020. Jaguar Land Rover (JLR) has also begun operations at its plants globally.
About 70% of the showrooms, sales and service outlets and 43% of the sales outlets opened for commercial vehicles, covering about 56% of the retail market. For passenger vehicles, 59% of the showrooms resumed operations covering 69% of the retail market.
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