It is reported that TATA Motors luxury auto manufacturer Jaguar has followed the lead of Toyota, Land Rover and Bentley in announcing a cut in production in the wake of falling levels of demand.

Jaguar's year on year UK sales fell by 41% in August as compared with a 26% reverse for Toyota and a 58% dive for Land Rover.

A company spokesman said: “In view of the current sales environment we will be taking action to balance production with demand in the fourth quarter.”

Declining exports, low levels of consumer confidence in the domestic economy and the limited availability of credit are said to be the main causes of the slump, with premium marques like Jaguar finding the going particularly heavy.