Tata hires KPMG to help cut costs at Jaguar as its earnings in India surge

JAGUAR LAND ROVER&rsquo;S (JLR) owner, Tata Motors, has hired KPMG and Roland Berger Strategy Consultants to advise it on cost-cutting at the struggling car firm. <br /><br />The carmaker will be given advice on how to break even and on how to manage its cashflow more effectively.<br /><br />&nbsp;&ldquo;We are going ahead with their proposals and this is going to improve the cost reduction efforts in JLR,&rdquo; Tata&rsquo;s vice chairman Ravi Kant said.<br /><br />JLR has not had to shut its factories for long periods like other carmakers such as Honda, but its staff have agreed to work four-day weeks and 2,000 temporary workers have been laid off.<br /><br />The European Investment Bank has offered a &pound;340m loan to the carmaker, but JLR cannot accept it until the UK government agrees to underwrite it.<br /><br />The news comes as Tata announced a 58 per cent increase in net profits, with lower steel prices helping the blow dealt by falling vehicle sales. <br /><br />Its net profit for the three months to June &ndash; excluding performance at JLR &ndash; was 5.14bn rupees (&pound;65m), compared to 3.26bn rupees in the same period last year.<br /><br />&ldquo;The company&rsquo;s continued focus on cost efficiencies, coupled with reduction of raw material prices and improvement in sales, yielded considerable benefits,&rdquo; the company said. <br /><br />Tata sold 127,340 vehicles in the period, down from the 133,079 it sold last year.