The fundraising comes because the coronavirus pandemic has hit international automakers’ provide chains and gross sales.
- Reuters Shanghai
- Last Updated: June 8, 2020, 11:21 AM IST
Jaguar Land Rover (JLR), owned by India’s Tata Motors, has entered into agreements with lenders in China for an unsecured 3-year time period mortgage facility of 5 billion yuan ($704.50 million), marking its first debt financing in China, it mentioned.
Arthur Yu, JLR’s vice chairman and China chief monetary officer, mentioned the Chinese banks that would offer it with the three-year revolving mortgage embody Bank of China, ICBC, China Construction Bank, Bank of Communications and Shanghai Pudong Development Bank.
The fundraising comes because the coronavirus pandemic has hit international automakers’ provide chains and gross sales. Sales from China used to account for 25% to 30% of JLR’s international gross sales, however over the previous two months make up 50%, Yu mentioned.
The mortgage facility “can help JLR China better manage cash flow amid the coronavirus epidemic”, Yu informed reporters on Friday.
JLR, which imports vehicles and likewise has a producing partnership within the Chinese jap metropolis of Changshu with Wuhu-based Chery Automobile, mentioned its China gross sales in April had been degree with the identical interval final 12 months, and it noticed gross sales development in May.
Yu mentioned the corporate expects gross sales of China’s luxurious automobile phase this 12 months to be degree with final 12 months or see slight development.