Jaguar and Land Rover will be heading into hybrid territory. Although both companies have hinted at dabbling into alternative fuels and electric drivetrains, a £340 million loan (currently about $517 million) was granted to the company specifically for the “development of micro and full hybrid drive trains and research into more energy efficient car bodies”.

Jaguar Land Rover’s parent company Tata is taking advantage of eco-funding to help stabilize the luxury carmakers. As Europe gets more green minded, it’s looking for more opportunities to reduce emissions and waste. The loan was secured through the publicly owned European Investment Bank, and according to the press release, the loan was granted under the European Clean Transport Facility.

Neither Jaguar nor Land Rover currently offers a hybrid vehicle, but both brands have smaller (i.e. lighter) vehicles in different planning stages that could be receptive to hybrid technology. Land Rover's smallest SUV, the LRX, is on schedule for mid-2011, and it’s rumored to have an available diesel V6 paired to an electric motor...