UPDATE 2-Tata Motors hit by Jaguar Land Rover loss

* Tata FY09 loss $520 million, first in eight years

* Jaguar Land Rover unit 10-mth loss of 306 mln pounds

* Warns of more job cuts, plant closures

* Shares end 0.8 pct higher in Mumbai market (Updates with post-tax Jaguar Land Rover loss, quotes from news conference)

By Narayanan Somasundaram

MUMBAI, June 26 (Reuters) - Slumping demand drove Tata Motors (TAMO.BO) into its first annual loss in eight years and India's top vehicle maker warned of more job cuts and plant shutdowns at the loss-making Jaguar and Land Rover unit.

The firm, which controls 60 percent of the world's fifth-biggest truck and bus market, said it was readying for major belt-tightening, including deferring capital expenditure wherever possible to keep a tight rein on costs.

"The lightening struck some time in the middle of last year, and there was a huge unprecedented global meltdown," Vice Chairman Ravi Kant told a news conference.

"We have sent people on sabbatical, gone for cheaper low-cost country sourcing and tight control in cash flows, and are assisting JLR (Jaguar Land Rover) for a major belt tightening."

Tata Motors said the Jaguar Land Rover unit it bought in 2008 posted a loss after tax of 306 million pounds ($504 million) in the 10 months of the fiscal year to March 2009 as a brutal global recession crippled car sales, primarily luxury and sports utility vehicles.

JLR sold 167,000 vehicles for the 10 months to March, compared with 246,000 in the same period the year before.

The economic crisis has sent two of America's three big carmakers into receivership and is set to plunge Toyota Motor Corp (7203.T) deeper into loss. [ID:nT82556] [ID:nT242118]

Kant said Jaguar Land Rover's performance was better than expected in the new fiscal year but said further job cuts or plant shutdowns at the unit would depend on how the market situation evolved.

FIRST ANNUAL LOSS IN 8 YEARS

In India, higher borrowing costs and an economic slowdown put the brakes on auto sales for much of 2008-09, though sales have improved since February.