Obstacles faced

In June 2008, the Tata Group faced a global financial crisis due to the failure of the acquisition of Jaguar Land Rover (JLR). The bridge loan taken by them of US$ 3 billion which was used to fund the acquisition of the JLR was not paid back fully, only US$ 1 billion was paid.Complexity in raising funds before the acquisition was another problem for the Tatas.Tata had negative working capital and it was facing a problem in cash liquidity. The Tatas thought of merging with other big companies, but very soon it managed all the issues.Due to the Global financial crisis, the Indian automobile sector was highly affected the GDP growth declined and inflation took place due to which the prices of the fuels and automobiles products increased and hence Tata Motors, the leading automobile company of India suffered the most.