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Jaguar Land Rover is losing money again and has loaned 5 billion yuan in China. India's Tata Motors reported a loss of 98.94 billion rupees ($1.3 billion, or 9.225 billion yuan) in its fourth quarter (first quarter of this year), up from a net profit of 11.17 billion rupees in the same period last year. Its global and domestic operations have been severely affected by epidemic restrictions.

Jaguar Land Rover is a subsidiary of India's Tata Motor Company. Tata Motors lost 501 million pounds ($632 million, or 4.487 billion yuan) in the fourth quarter of its UK business, according to financial reports, as Jaguar Land Rover sales continued to decline.

In the fourth quarter of the fiscal year (January-March 2020), Jaguar Land Rover global sales totaled 108900 vehicles, down 30.9% from a year earlier, while China, its largest market, also saw a decline in sales due to the epidemic.

As a result of falling sales and operating losses, Jaguar Land Rover applied to the British government for assistance at the end of May to deal with the decline in new car sales caused by the novel coronavirus pandemic.

Jaguar Land Rover is negotiating to borrow more than 1 billion pounds through the UK government's emergency loan scheme, as well as seeking tax breaks, research grants and other subsidies, foreign media quoted people familiar with the matter as saying. In response, Jaguar Land Rover said it was "having regular discussions with the government on a range of issues", but declined to provide details.

Loan aid from the UK has not been successful, and China has come to the rescue. In early June, in response to the impact of the COVID-19 epidemic and replenishing cash flow, Jaguar Land Rover announced that it had reached a guaranteed loan agreement of 5 billion yuan with Chinese lenders, the first debt financing for Jaguar Land Rover in China.

It is understood that Jaguar Land Rover's financing in China took two months from the negotiation of the plan to the final implementation. The banks providing loans include Bank of China, Industrial and Commercial Bank of China, China Construction Bank, Bank of Communications and Shanghai Pudong Development Bank, providing a total of 5 billion yuan in loans for a period of three years.

Yu Junrui, vice president of Jaguar Land Rover and chief financial officer of China, said, "Automobile is an industry with a very long industrial chain and high capital requirements, and cash is the blood of the industrial chain." Under the epidemic, how to ensure cash flow is very important for enterprises. " Yu Junrui also said that the financing not only contributes to the daily operation of the company, but also reserves funds for future R & D and investment of Jaguar Land Rover China.

Jaguar Land Rover also said it had further cut its sales forecast for 2020 from 510000 to 45-460000 because of the uncertainty caused by the COVID-19 epidemic.

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