MUMBAI (Reuters) – India's Tata Motors said on Thursday its Jaguar Land Rover unit has received a 340 million pound ($458 million) loan from the European Investment Bank (EIB).
Tata Motors said the loan will finance development of micro and full hybrid drivetrains and also fund research into more energy efficient car bodies for Jaguar Land Rover.
The eight-year amortizing loan from the EIB, the EU's finance arm, was granted under the European Clean Transport Facility.
"This will support the progress of turnaround in Jaguar Land Rover's business in challenging market conditions, alongside cost cutting measures, increase of volumes and the improved margins strategy currently being implemented by Jaguar Land Rover," Ravi Kant, Tata Motors vice chairman, said in a statement.
Tata said the EIB loan completes the last major element of its funding plan for Jaguar Land Rover and is part of the company's efforts to strengthen the group's balance sheet.
In 2009, the company secured over 500 million pounds of funding for Jaguar Land Rover from the international finance market.
Reuters contributed to this article