Bond market signals rocky road ahead for Tata Motors, Jaguar Land Rover

JLR bonds trading at record yield of 13.2%, more than double since the pandemic broke out

The bond market is signalling a rocky road ahead for both Tata Motors and its British subsidiary, Jaguar Land Rover (JLR), as they struggle with sales. The yield on JLR bonds has more than doubled since the pandemic blew out of proportion in early March and is refusing to cool down.

JLR bonds are trading at record yield of 13.2 per cent — one of the highest in the automotive industry, nearly three times that of General Motors and 10 times that of Toyota Motor. This, the analysts said, will make it tough for JLR to raise additional funding to