Tata Motors denies plans to sell stake in Jaguar Land Rover

Tata Motors on Monday denied reports it planned to sell its stake in Jaguar Land Rover after the collapse of talks with the UK government on a rescue package.

Talks with the carmaker and Tata Steel, which are both owned by the Indian conglomerate Tata Group, broke down after the Treasury rejected providing taxpayer support during the coronavirus pandemic.

“Unconfirmed and unsubstantiated reports have been published by some media alleging that Tata Motors may sell stake in Jaguar Land Rover (JLR). Tata Motors categorically denies and dismisses any such intent. Jaguar Land Rover is and remains a key pillar of Tata Motors and the wider Tata Group,” the company said in a statement.

JLR, which employs more than 30,000 workers in the UK, lost almost £1bn between January and July. The company was excluded from the Bank of England’s finance support scheme because of its poor credit rating.

“We recently announced our results for the first quarter and have indicated that we are maintaining solid liquidity despite the Covid-19 pandemic and expect to be cash positive from the second quarter onwards,” the company said.

“Jaguar Land Rover business remains strong as it transitions to new electrified, autonomous and connected technologies to support its Destination Zero ambition.”