Troubles for Tata Motors Not Over Yet

author image Satish Kalepu
Thursday 14 May 2009, 00:00 AM

After Tata Nano, troubles seem to be far from over for Tata Motors. The company had bought Jaguar-Land Rover and Corus last year. It was seen as an indication of economic growth then but now it looks like a new series of deeper troubles for the company. "Jaguar-Land Rover is in a deep hole," Paul Newton, analyst at IHS Global Insight told media.

Ratan Tata has made an unusually frank admission to Britain’s Sunday Times newspaper by admitting that India’s oldest business house may have gone “too far, too fast.” He also admitted "at an inopportune time in the sense they were near the top of the market in terms of price.” As the company remains saddled with inappropriate debts looming large over its head, sales of both the luxury brands fail to pick up owing to the downturn in the economy. Tata Motors is also seeking British government help to carry the brands through the recession. It has to repay its two billion dollar debts by next month which were borrowed for the purchase of Jaguar-Land Rover deal. The Tata official declined to give any official statement on the issues related to JLR repayment issues.

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