After first extending the production pause till September 24 due to the cyberattack, the pause was then extended by JLR till October 1. While the company has not officially quantified the financial loss that it is incurring due to this halt in production, BBC reports suggest that it is losing £50 million or $68 million a week, with many of the 33,000 staff told to stay home till the issue is resolved.
If indeed JLR will be taking a £2 billion hit, along with the losses it is already incurring due to the production shutdown, it will be higher than its Profit After Tax for all of financial year 2025, which stood at £1.8 billion.
Ahead of the incident, the report also states that JLR failed to finalise a cyber insurance deal which was being brokered by Lockton, citing three cyber insurance market sources. Lockton is said to be the world’s largest independent insurance brokerage.
JLR is a very important component for Tata Motors as it contributes to 70% of the company’s consolidated topline.
Tata Motors recently announced that it delivered over 10,000 vehicles on the first day of Navratri and also had over 25,000 inquiries, indicating a strong start to the festive season. Auto companies will be reporting their sales data for the month next week.
In response to the UK Parliament’s Business and Trade Committee on September 24, JLR CEO Adrian Mardell highlighted that JLR has pai of debt worth over £5 billion, and is in a good position to secure additional short-term liquidity. More on this here.
Shares of Tata Motors ended 2.6% lower at ₹664.9. The stock had also declined 2.6% on Wednesday, and has now declined in five out of the last six trading sessions.
