"Jaguar Land Rover (JLR) is in secret talks with the Government for a one billion-pound loan, just nine months after the Tatas, the Indian conglomerate, bought the luxury car marque," the Sunday Times reported.

Tata is looking to the Government for a bridging loan to help it over the next 24 months, a period where the industry will come under further financial pressure when it is difficult to access funding markets, the report added.

The economic downturn has hit the auto industry hard and at present a number of large British-based industrial groups are also considering asking the government for financial support.

"Tata still has confidence in the future of JLR but believes he needs government help to tide it over for the next two years," the daily said.

The Sunday Times further added that "David Smith, the chief executive of JLR, has made a direct plea to the Government for cash. He believes that with help being given on the Continent and in America to carmakers Britain has a good case for financial aid."

"The group, which employs 15,000 workers in the UK, needs to slow production in order to sell a backlog of vehicles that have already come off the production line. Last year Land Rover produced 2,30,000 vehicles, while Jaguar made 54,000," the newspaper said.