The shares of Tata Motors fell by more than 3 per cent during early morning trade on September 25, and the company emerged as the top Nifty 50 and F&O loser.
By 1:26 PM, the firm traded at Rs 664.80 apiece, crashing more than 2.5 per cent. This downfall followed a media report stating that Jaguar Land Rover (JLR) might be in line to face a €2 billion hit. According to a report by The Financial Times, the firm’s subsidiary, JLR, might have to incur the cash outflow for not being insured against a recent cyberattack which disrupted its operations.
The impact on JLR could be higher than the firm’s entire profit from the previous fiscal. According to cyber insurance market sources quoted by The Insurer, JLR failed to close a Lockton-negotiated deal, which may have left it exposed without insurance cover.
JLR’s Story
Jaguar Land Rover is extending the closure of its factory until October 1, 2025, in the aftermath of a cyberattack in late August.
Tata Motors said earlier this month that the firm is working at a pace to resolve global IT issues impacting its businesses, adding that it will also give an update on the same in due course.
Later JLR said, “We have made this decision to give clarity for the coming week as we build the timeline for the phased restart of our operations and continue our investigation.”
More About The Cyberattack
Jaguar Land Rover (JLR) operates three manufacturing plants in the UK, located in Solihull, Halewood, and Wolverhampton, collectively producing around 1,000 vehicles daily. News reports indicate that the company is currently facing weekly losses estimated at £50 million ($68 million).
Significance of JLR to Tata Motors
In the fiscal year 2025, JLR accounted for 72 per cent of Tata Motors’ total automotive revenue, up from its contribution in FY24, highlighting the stronger growth trajectory of JLR compared to Tata-branded vehicles.
The company’s revenue gains in FY25 were largely driven by improved sales in North American markets. Meanwhile, employee costs at JLR rose 15.6 per cent to Rs 36,887 crore (£3,417 million) due to an increase in headcount and annual salary increments.
The cyberattack prompted UK Business Secretary Peter Kyle and Industry Minister Chris McDonald to visit JLR earlier this week to meet with the company’s leadership and assess the situation. According to Reuters, over 40 per cent of UK businesses experienced some form of cyber breach in the past year.
The disruption comes at a critical time for Tata Motors, which is witnessing heightened festive demand in India following the recent GST rate cuts. On the first day of Navratri, the company recorded 10,000 car deliveries and received over 25,000 enquiries, marking a strong start to the season.
The cyberattack on JLR, however, poses a significant operational and financial challenge for Tata Motors during this period of heightened sales activity.
