Tata Motors shares fall 6% as JLR halts production
What's the story
Jaguar Land Rover (JLR), the luxury division of Tata Motors, has temporarily halted production at its Solihull plant. The company is facing a parts supply issue with one of its suppliers. The disruption is likely to last for about two weeks, affecting the production of key models like the Range Rover and Range Rover Sport. Following the news, shares of Tata Motors fell nearly 6% to hit a one-year low of ₹301.
Company statement
We are working closely with the supplier: JLR spokesperson
In a statement to the BBC, a JLR spokesperson said, "Due to a part supply challenge with a supplier, we are temporarily pausing production on certain vehicle lines at our Solihull manufacturing facility." The spokesperson added that they are working closely with the supplier to resolve the issue as quickly as possible and minimize any impact on their clients or operations.
Timing coincidence
Production halt coincides with scheduled Easter break
The production halt at JLR's Solihull plant comes just in time for an already scheduled Easter break. Despite the temporary shutdown, employees are expected to continue attending the site as usual during this period. The latest disruption adds to a series of recent challenges for the West Midlands-based carmaker.
Past issues
Cyberattack-induced production disruption last year
Last year, a major cyberattack forced JLR to shut down its computer systems for several weeks. This incident disrupted operations before production eventually returned to normal levels. The company had reported a profit after tax of £1.8 billion in FY25, but a potential loss of £2 billion could offset or exceed that entire year's earnings.
Financial fallout
Financial impact of the cyberattack and subsequent production disruption
JLR did not have insurance cover for cyber incidents, which worsened the financial impact. The company contributes around 70% to Tata Motors's overall revenue. For Q3, it reported a revenue of £4.5 billion, marking a 39% decline compared with Q3FY25, largely due to lower wholesale volumes following the cyberattack. Production normalized only by mid-November with additional time required to restore global distribution.