Could Tata Motors' Shares Be Impacted by JLR's €2 Billion Cyberattack Loss?
Click to start listening
Synopsis
Tata Motors' shares took a hit after revelations of a potential €2 billion loss from a JLR cyberattack. This situation raises concerns about the automaker's profitability moving forward. Discover the implications of this incident and its effects on Tata Motors amidst the festive season in India.
Key Takeaways
- Tata Motors' shares fell by 2.99% due to JLR cyberattack losses.
- Potential loss of €2 billion could exceed JLR's FY24 profits.
- JLR did not finalize cyber insurance before the attack.
- Factory closures extended until October 1.
- Tata Motors saw strong demand in India during Navaratri.
New Delhi, Sep 25 (NationPress) Shares of Tata Motors experienced a decline of nearly 2.99 percent in early trading on Thursday after reports surfaced indicating that Jaguar Land Rover (JLR), its British subsidiary, might face an unprecedented uninsured loss of around €2 billion due to a cyberattack that has severely disrupted production.
The repercussions could exceed JLR’s total profit from the previous fiscal year, as highlighted in a report by The Financial Times.
According to various media outlets, JLR had not secured a cyber insurance policy facilitated by Lockton, leaving the automaker vulnerable to this incident.
This cyberattack, which took place on September 2, has compelled the company to delay its production schedule repeatedly.
JLR has stated it will continue factory closures until October 1 while it resolves global IT challenges and gears up for a phased resumption of operations.
Earlier this month, Tata Motors remarked, "We are working swiftly to resolve global IT issues that are affecting our business. We will provide updates as necessary in due course."
The three UK manufacturing plants in Solihull, Halewood, and Wolverhampton, which together produced about 1,000 cars daily, are reportedly losing approximately £50 million per week due to the shutdown.
JLR is conducting a forensic analysis of the cyberattack and has indicated that operations will gradually restart in a controlled manner.
During FY25, Jaguar Land Rover accounted for 72 percent of Tata Motors' total automotive revenue, surpassing its contribution in FY24, indicating robust growth at JLR compared to Tata's domestic vehicle segment.
In India, Tata Motors registered around 10,000 car deliveries and over 25,000 inquiries on the inaugural day of Navaratri, signaling a promising kick-off to the festive season. Over the past year, Tata Motors shares have plunged to Rs 300.90, marking a 31.23 percent decline.
Point of View
It is crucial to recognize the serious implications of this cyberattack on Tata Motors and JLR. The potential financial fallout from this incident not only affects the company's operational capacity but also shakes investor confidence. Tata Motors must navigate these challenges with transparency and strategic foresight.
NationPress
25/09/2025
Frequently Asked Questions
What caused the decline in Tata Motors' shares?
The decline in Tata Motors' shares was triggered by reports of a potential €2 billion uninsured loss from a cyberattack on its subsidiary, Jaguar Land Rover.
What impact did the cyberattack have on production?
The cyberattack forced Jaguar Land Rover to delay production schedules, resulting in extended factory closures and significant financial losses.
How has Tata Motors performed in the domestic market recently?
Despite the challenges, Tata Motors reported around 10,000 car deliveries and over 25,000 inquiries on the first day of Navaratri, indicating a strong festive season start.
What percentage of Tata Motors' revenue comes from JLR?
During FY25, Jaguar Land Rover contributed 72 percent to Tata Motors' total automotive revenue, indicating strong growth compared to the previous fiscal year.
When will Jaguar Land Rover resume operations?
Jaguar Land Rover plans to resume operations gradually after addressing global IT issues, with factory closures extended until October 1.
