Owner Tata Motors is to plough 'tens of millions of pounds' into troubled Jaguar and Land Rover in response to several weeks of speculation over the health of the luxury car-makers.
Representatives are thought to have been lobbying the British government for weeks for government aid, a request business minister Peter Mandelson is thought to have resisted.
Get a FREE quote on your next JAGUAR
Click below and save up to 30% on a new JAGUAR
Mandelson had questioned why new owner Tata Motors had been unable to divert its own cash into JLR, and apparently received his response late last week with Tata's announcement - revealed in the Financial Times.
But analysts question whether Tata can afford to divert the necessary resources to prop up JLR in the long-run without recourse to government-backed credit lines and loans.
The Indian domestic market has suffered as badly as European markets, and Tata Motors' $2.3bn outlay on purchasing JLR from Ford has added a significant debt to the subsidiary.
Tata Motors' financial difficulties have come at a time when parent company Tata Group has recently announced an expensive F1 sponsorship deal.
Automotive manufacturer representatives and unions have called on the government to urgently inject cash into JLR, safeguarding 15,000 UK jobs, but the government is thought to be reluctant to commit taxpayer money to the company.