Nano bookings to soothe Tata Motors funding woes
Tata Motors looks set to harness massive demand for its Nano, the world cheapest car, helping it raise funds to cover bridge loans for last year’s purchase of the luxury Jaguar and Land Rover brands.
Interested buyers need to front up most of the cost of the new car in April, potentially giving Tata Motors $1 billion for at least three months and at least $200 million against the delivery of the first 100,000 units – which could take more than a year.
“We are expecting lakhs of applicants, judging from the initial reaction,” said Chairman of top bank State Bank of India (SBI) OP Bhatt.
SBI has a tie-up as a preferred financier for Nano bookings. Tata Motor’s cash needs are pressing. It has $100 million of cash left in its books as of the end of 2008 and is finding it hard to raise Rs 70 billion for working capital.
This article was originally posted IBNLive.com