Jaguar Land Rover today said it was cutting 300 management jobs as well as a further 150 agency staff as it copes with a “severe” fall in demand for new cars.

Analysts said the business bought by India's Tata last year was desperately attempting to look like it was making painful cutbacks as it lobbies the government for £1 billion in taxpayer aid.

In a move eerily reminiscent of the pay and bonus freezes at Britain's bailed-out banks, Jaguar Land Rover said managers who survive the cull will not receive any bonuses in 2009 and their pay increases have been deferred to 1 October 2009 at the earliest.

Chief executive David Smith said: “It is only right and proper that our response to the unavoidable impact of the credit crunch and a severe reduction in demand includes actions across all grades and functions in the company. We don't expect sales conditions to return to normal levels for some time.”

The axed Jaguar workers will join a lengthening dole queue of skilled vehicle industry workers in the UK. Hundreds of jobs have been lost in recent weeks, with JCB and clutch maker AP Driveline wielding the axe this week.

Jaguar Land Rover, based in Gaydon, Warwickshire, has 15,000 employees with plants in Halewood on Merseyside, Coventry, Solihull and Castle Bromwich.

Managers are spread across all the sites.