SHANGHAI: Jaguar Land Rover (JLR), owned by India’s Tata Motors, has entered into agreements with loan providers in China for a secured expression personal loan facility of five billion yuan ($704.fifty million), marking its to start with personal debt financing in China, it said.
Arthur Yu, JLR’s vice president and China chief money officer, said the Chinese financial institutions that would deliver it with the a few-12 months revolving personal loan include Financial institution of China, ICBC, China Development Financial institution, Financial institution of Communications and Shanghai Pudong Development Financial institution.
The fundraising will come as the coronavirus pandemic has hit world wide automakers’ supply chains and gross sales. Product sales from China used to account for 25% to thirty% of JLR’s world wide gross sales, but in excess of the past two months make up fifty%, Yu said.
The personal loan facility “can assist JLR China far better control hard cash stream amid the coronavirus epidemic”, Yu told reporters on Friday.
JLR, which imports autos and also has a production partnership in the Chinese jap city of Changshu with Wuhu-based Chery Auto, said its China gross sales in April were being stage with identical interval past 12 months, and it noticed gross sales development in May.
Yu said the enterprise expects gross sales of China’s luxurious auto section this 12 months to be stage with past 12 months or see slight development.