Tata Motors shares tank as JLR cyberattack could cost €2B
What's the story
Tata Motors' shares fell by 4% today, making it the top Nifty 50 and F&O loser. The decline comes after a Financial Times report suggested that its subsidiary Jaguar Land Rover (JLR) could incur a £2 billion loss from a recent cyberattack. The attack disrupted operations at key facilities and was not covered by insurance, as per The Insurer. The insurance policy was being brokered by Lockton, the world's largest independent insurance brokerage firm, but was not completed in time.
Operational disruption
JLR halts production
The cyberattack has forced JLR to halt production at its major facilities. The suspension was first extended to September 24 and has now been pushed further to October 1. The company has around 33,000 employees and many have been asked to stay home until the issue is resolved. Tata Motors has not officially confirmed the extent of the financial impact but reports suggest it could be losing nearly £50 million ($68 million) every week due to this incident.
Financial significance
Potential loss could exceed full-year earnings
JLR accounts for nearly 70% of Tata Motors' consolidated revenue. In FY25, it contributed a whopping 72% to the total automotive revenue of Tata Motors. The company had posted a Profit After Tax of £1.8 billion for FY25, meaning the estimated £2 billion loss from this cyberattack could potentially wipe out or exceed a full year's earnings.