Autobayng News Team
Tata Motors shares drop 2.4% after reports suggest JLR may face £2 billion hit from cyberattack.“>
Tata Motors shares fell by 2.4 per cent to their intraday low of ₹666.60 on the BSE in early trade on Thursday after reports indicated that its UK-based subsidiary Jaguar Land Rover (JLR) may be staring at a £2 billion financial blow due to the ongoing cyberattack, an amount that could exceed its entire profit after tax for the last financial year.According to a Financial Times report quoted by CNBC TV-18, the losses stem from a cyberattack that forced JLR to halt production across key facilities. Notably, JLR was not insured against such an event, which has significantly added to the financial strain. The production halt was first extended to September 24, and then pushed further to October 1, causing a major operational pause.While Tata Motors hasn’t officially confirmed the exact size of the financial hit, reports suggest the company may be losing nearly £50 million or $68 million every week, with many of the 33,000 JLR employees asked to stay home until the issue is resolved.
The fallout is particularly significant given JLR’s weight in Tata Motors’ financials—it contributes around 70 per cent of the company’s consolidated revenue. For context, JLR had posted a Profit After Tax of £1.8 billion for FY25, meaning the estimated £2 billion loss could potentially wipe out or exceed a full year’s earnings.
The reports also highlighted that JLR had failed to finalise a cyber insurance policy ahead of the incident. The policy was reportedly being brokered by Lockton, the world’s largest independent insurance brokerage firm, but had not been completed.On Wednesday, shares of Tata Motors closed 2.7 per cent lower at ₹682.75 on the BSE.
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