Tata Motors logos are seen at their flagship showroom before the announcement of their Q3 results in Mumbai February 14, 2013. REUTERS/Vivek Prakash/File Photo

BENGALURU (Reuters) - Jaguar Land Rover owner Tata Motors TAMO.NS posted a smaller-than-expected loss in the second quarter on Friday as a pick up in sales of its luxury car in China helped it ride out weak vehicles sales in India, its home market.

Improved sales for JLR is an indication of recovery for the iconic British brand which had been hit by a trend to move away from diesel cars towards cleaner fuels in markets such as China and Britain.

Tata bought Jaguar and Land Rover in 2008 for $2.3 billion. The company launched a revival plan last year to revive JLR business. Revenue from the unit rose 8% to 6 billion pounds ($7.69 billion) during the quarter, the company said.

However, overall revenue for Tata Motors fell 9% to 654.32 billion rupees as India’s auto industry struggles from a slump in demand for vehicles due to a credit squeeze in its shadow-banking sector and higher insurance costs.

Net loss for the three months ended Sept. 30 narrowed to 2.17 billion rupees ($30.62 million) from 10.49 billion rupees a year ago.

Analysts on average expected the company to lose 15.5 billion rupees, according to Refinitiv data.

The company’s shares closed 4.98% lower in a broader NSE market that ended flat on Friday.