The move by Tata, which bought the luxury carmaker earlier this year for $2.3 billion (1.5 billion pounds) from Ford, comes on top of “hundreds of millions” of working capital it has provided to the British firm, the paper said citing sources close to Tata.

Tata Motors, reached by Reuters in Mumbai, had no comment on the report, but analysts said pumping money into Jaguar Land Rover would strain Tata Motors’ finances.

Car makers around the globe have been hit by a collapse in demand as the economic slowdown spreads and access to credit is choked off by the financial crisis.

The Times newspaper reported on Monday that the prospect of British government assistance to help keep Jaguar Land Rover afloat had helped the company’s owners to secure last-minute funding from the banks.

It quoted senior figures in the British civil service as saying that British Prime Minister Gordon Brown, Chancellor (finance minister) Alastair Darling and Business Secretary Peter Mandelson had agreed that assistance for Jaguar would be necessary to prevent its collapse.

A spokesman for Britain’s Department for Business, Enterprise and Regulatory Reform told Reuters: “The government stands ready to help companies in the current difficult economic circumstances but does not have an open cheque book.

“The government has been in regular contact with Tata over Jaguar.”

Last week Mandelson confirmed that he had held talks with Jaguar Land Rover, which he said was under “particular strain”.

Brown said on Friday the government wanted to help the car industry through the economic downturn but the main responsibility lies with the carmakers’ owners.

Trades unions have called on the government to step in to save an industry employing tens of thousands directly and indirectly through suppliers.

The United States last week announced a $17.4 billion loan package to rescue its stricken auto makers.

The Canadian government put up an additional $3.3 billion in emergency loans a day later.

TATA STRAIN

Analysts said any injection of funds by the top Indian vehicle maker would strain its finances. Tata Motors has already struggled to pay off a $3 billion bridge loan it had taken to fund the Jaguar and Land Rover brands.

“Debt funding is not a good option as it has to service that debt and it already has a high debt to equity ratio,” said India Infoline’s auto analyst Jatin Chawla.

Funding options for the company include leveraging the loans it has given to dealers and buyers and also using the group’s assets to raise finance, analysts said.

Earlier this month Standards & Poor’s lowered the company’s corporate credit rating to BB- from BB and placed it on credit watch with negative implications.

Tata Motors is raising about $540 million through term deposits, which analysts expect would also be used to repay the loan. Last October the company’s founders had to come to the rescue of an $850 million rights equity issue which was inadequately subscribed by shareholders.

However, shares in Tata Motors were trading up 4.7 percent on expectations that falling interest rates could boost demand for its vehicles and also on hopes that the UK government would provide assistance to Jaguar Land Rover.

Tata Motors, which has a market value of about $1.5 billion, has dropped 74 percent so far this year while the main index is down more than half.

(Reporting by Janaki Krishnan and Kazunori Takada; Additional reporting by David Milliken in London; Editing by Ranjit Gangadharan and Lincoln Feast)

Tata Motors and Hyundai Motor India Ltd. are the two major auto manufacturers in India to take the initiative.

Retail Financing will help both Banking and Automobile sector to improve upon their businesses which in recent times have slowed down.

Hyundai and Canara Bank sign MOU for retail financing.

Hyundai Motor India Ltd, the second largest car manufacturer and the largest passenger car exporter, in a bid to enhance finance option for its customers, signed a memorandum of Understanding (MOU) with Canara Bank, a major public sector bank in Bengaluru. This partnership will prove helpful in augmenting the business at a time when the auto industry is facing a major slowdown.

With more than hundred years of its proud existence Canara Bank has a wide network of over 2700 branches and ATMs across the country. With its widely acclaimed customer centric approach it has built up a strong customer base of over 33 millions. This association with HMIL will help both the partners to reach out to wider market and make auto loans convenient and easy for prospective car owners.

Speaking on the occasion, Arvind Saxena, Sr. Vice President, Marketing & Sales, HMIL, said, “We are glad to partner with Canara Bank as we see it as value addition for our customers. In the current scenario, we consider it as a welcome move as there is a need for increased financing options and rationalized interest rates for the benefit of our customers.

The two partners will utilize and leverage each other’s strengths to cross sell Hyundai vehicles and the bank’s car loans and schemes. The bank will provide competitive interest rate and increased convenience and accessibility to their customers.

Hyundai Motor India Ltd, already enjoys a strong presence in both the metro and the mini-metro markets with a complete stable of products starting with compacts to premium luxury cars and SUV’s. Through this strategic tie-up with Canara Bank, the company seeks to further strengthen its position across all major markets and focus on a major retail expansion drive.

Tata Motors ties up with Indian Bank and Andhra Bank for retail finance.

“In order to provide an added facility of car finance to its customers, Tata Motors has entered into an understanding with Indian bank for financing its range of passenger vehicles,” the company said in a statement.

At present Indian Bank offers car loans up to 85 per cent of on-road price for tenure up to seven years at an interest rate of 11.5 per cent per annum.

As per the agreement, financing facilities would be available at 1,575 branches of the Indain Bank and 470 sales touch points of the auto major across the country,

Tata Motors has also singed up the MOU with Andhara Bank for financing their Vehicles.

Andhra Bank offers car loans up to 90 per cent of invoice for tenure ranging up to six years at an interest rate of 11.75 per cent. The bank also provides 0.5 per cent concession in interest rates to women customers.

As per the agreement, finance facilities would be available at the 1,430 branches of the lending bank as well as 470 sales touch points of Tata Moters.

Source: The Financial Express

Tata Motors and Hyundai Motor India Ltd. are the two major auto manufacturers in India to take the initiative.

Retail Financing will help both Banking and Automobile sector to improve upon their businesses which in recent times have slowed down.

Hyundai and Canara Bank sign MOU for retail financing.

Hyundai Motor India Ltd, the second largest car manufacturer and the largest passenger car exporter, in a bid to enhance finance option for its customers, signed a memorandum of Understanding (MOU) with Canara Bank, a major public sector bank in Bengaluru. This partnership will prove helpful in augmenting the business at a time when the auto industry is facing a major slowdown.

With more than hundred years of its proud existence Canara Bank has a wide network of over 2700 branches and ATMs across the country. With its widely acclaimed customer centric approach it has built up a strong customer base of over 33 millions. This association with HMIL will help both the partners to reach out to wider market and make auto loans convenient and easy for prospective car owners.

Speaking on the occasion, Arvind Saxena, Sr. Vice President, Marketing & Sales, HMIL, said, “We are glad to partner with Canara Bank as we see it as value addition for our customers. In the current scenario, we consider it as a welcome move as there is a need for increased financing options and rationalized interest rates for the benefit of our customers.

The two partners will utilize and leverage each other’s strengths to cross sell Hyundai vehicles and the bank’s car loans and schemes. The bank will provide competitive interest rate and increased convenience and accessibility to their customers.

Hyundai Motor India Ltd, already enjoys a strong presence in both the metro and the mini-metro markets with a complete stable of products starting with compacts to premium luxury cars and SUV’s. Through this strategic tie-up with Canara Bank, the company seeks to further strengthen its position across all major markets and focus on a major retail expansion drive.

Tata Motors ties up with Indian Bank and Andhra Bank for retail finance.

“In order to provide an added facility of car finance to its customers, Tata Motors has entered into an understanding with Indian bank for financing its range of passenger vehicles,” the company said in a statement.

At present Indian Bank offers car loans up to 85 per cent of on-road price for tenure up to seven years at an interest rate of 11.5 per cent per annum.

As per the agreement, financing facilities would be available at 1,575 branches of the Indain Bank and 470 sales touch points of the auto major across the country,

Tata Motors has also singed up the MOU with Andhara Bank for financing their Vehicles.

Andhra Bank offers car loans up to 90 per cent of invoice for tenure ranging up to six years at an interest rate of 11.75 per cent. The bank also provides 0.5 per cent concession in interest rates to women customers.

As per the agreement, finance facilities would be available at the 1,430 branches of the lending bank as well as 470 sales touch points of Tata Moters.

Source: The Financial Express