Jaguar Land Rover has been thrown a lifeline after winning a £600m order to supply 13,000 vehicles to China.

The carmaker, which is owned by Indian firm Tata, has been looking towards the British government for loans or loan guarantees following a sharp fall in sales during the recession.

However, JLR has been told to get support from its Indian parent, reports the Financial Times.

The order was announced yesterday after a meeting in London between UK business minister Lord Mandelson and Chinese commerce minister Chen Deming.

It involves the Chinese business SCAS Investment Group which has signed a memorandum of understanding to buy 10,000 Land Rovers and 3,000 Jaguars over three years.

Dealerships across China will sell the vehicles, mostly to private buyers.

Last year JLR sold about 13,000 vehicles in China.

Meanwhile Liberty cars has confirmed plans to build electric vehicles later this year, the first of which will be a Range Rover converted to use Liberty's drivetrain, reports the Carkeys website.

The deal came about after the Oxford based firm signed a memorandum of understanding with One North East to invest £30 million into manufacturing at the Nelson Industrial Estate at Cramlington.

The Range Rover will have a range of 200 miles and cost £125,000.