MUMBAI (Bloomberg) -- Tata Motors Ltd., the Indian automaker that owns Jaguar and Land Rover, is in talks with the U.K. government on assistance for the luxury units as sales plummet in their largest markets.

U.K. Business Secretary Peter Mandelson held discussions with Tata Motors Chairman Ratan Tata on Jaguar Land Rover, the visiting politician told reporters in Mumbai on Friday, without elaborating. The government is in “close contact” with Tata Motors, he said.
Jaguar Land Rover has eliminated 450 jobs and is in discussions with union leaders about more cost cuts as the global economic and financial crisis damps demand for luxury vehicles. Carmakers suspending production in the U.K. include Volkswagen AG’s Bentley Motors and Honda Motor Co., while Nissan Motor Co. will eliminate 1,200 jobs in Sunderland, England.
“The British government will see how we can help Jaguar Land Rover bring about the financial restructuring it’s seeking,” Mandelson said. Tata group is already taking steps that are necessary in this regard, he said.
Tata Motors rose 1.62 percent, the most in more than two weeks, to 135.05 rupees on the Bombay Stock Exchange on Friday.
U.K. sales at Jaguar Land Rover fell sharply last month as consumers refrained from big purchases. In December, sales at Land Rover fell 45 percent to 1,292 and sales at Jaguar decreased 9.4 percent to 924 vehicles. In the U.S., Jaguar sales dropped 34 percent and Land Rover sales slumped 46 percent.
Jaguar Land Rover will meet with U.K. officials next week to discuss increased lending to the British car industry, the unit’s Chief Executive David Smith said in an interview with Sky News.
The Indian truckmaker bought the luxury units from Ford Motor Co. last year for $2.4 billion.