Shares of Tata Motors slipped 1.87% in early trade on Thursday, September 25, to ₹670.20 apiece after reports highlighted a severe financial impact on its UK subsidiary Jaguar Land Rover (JLR) due to an ongoing cyberattack.
According to the Financial Times, JLR could face a £2 billion bill from the disruption, a sum greater than its profit after tax for the entire FY25, which stood at £1.8 billion. The report further noted that JLR was not insured against the cyberattack, after failing to finalise a deal with global insurance broker Lockton.
The cyberattack has already forced JLR to pause production, initially until September 24, later extended to October 1. BBC reported that the company is losing around £50 million ($68 million) per week during the shutdown, with a significant portion of its 33,000 staff told to stay home until systems are restored.
JLR contributes around 70% of Tata Motors’ consolidated revenues, making the disruption a significant blow for the parent company. While the company has yet to officially disclose its financial losses, the reported scale of the impact has sparked investor concerns, leading to Thursday’s decline in Tata Motors shares.
Despite this, Tata Motors has seen strong festive momentum domestically, delivering over 10,000 vehicles on the first day of Navratri and recording more than 25,000 customer inquiries. Auto companies, including Tata Motors, are set to release their September sales data next week.
