Tata Motors’ shares dip 3 pc as €2 billion loss from JLR cyberattack may exceed FY25 profit
Tata Motors shares dropped nearly 3 percent in early trading on Thursday after reports surfaced about a major hit to its British arm, Jaguar Land Rover (JLR). The company could face an uninsured loss of about €2 billion from a cyberattack that threw production into chaos.
This potential loss might even top JLR’s entire profit from the previous fiscal year, according to a Financial Times report. The issue stems from JLR not finalizing a cyber insurance policy through broker Lockton, leaving the automaker exposed, multiple outlets say.
The cyberattack hit on September 2 and has forced JLR to delay production multiple times. Now, the company plans to keep its factories closed until October 1 as it tackles widespread IT problems and gears up for a careful restart.
Tata Motors shared an update earlier this month, saying, “We are working at pace to resolve global IT issues impacting our business. We will provide an update as appropriate in due course.”
JLR’s three UK plants—in Solihull, Halewood, and Wolverhampton—normally churn out around 1,000 cars a day. With them shut down, estimates put weekly losses at about £50 million. The team is running a forensic probe into the cyberattack and promises a step-by-step return to normal operations.
JLR plays a huge role in Tata Motors’ success, making up 72 percent of the company’s automotive revenue in FY25—up from the year before. That shows JLR growing faster than Tata’s home vehicle business in India.
On a brighter note, Tata Motors kicked off India’s festive season strong. On the first day of Navaratri, the company delivered about 10,000 cars and fielded more than 25,000 customer inquiries.
Still, Tata Motors shares have taken a beating over the past year, falling Rs 300.90 or 31.23 percent. Investors are watching closely as the cyberattack fallout unfolds.
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