Tata Motors Limited’s shares fell 4 per cent intraday on Thursday, September 25, after its unit Jaguar Land Rover was hit by a major cyberattack that could potentially wipe out an amount equal to its entire profit for FY25.Shares of Tata Motors were trading at Rs 662.55 per share with a drop of 3 per cent around 11:15 am, against the previous day close at Rs 682.95 apiece. The Financial Times report states that JLR is likely to hit with a £2 billion as it was not insured against the cyberattack, leading to operational disruption and financial losses.
According to reports from CNBC TV18, JLR initially prolonged its production halt until September 24 due to a cyberattack, and this halt was further extended to October 1. Although the company has not officially estimated the financial impact of this production suspension, BBC reports indicate that it is facing losses of £50 million or $68 million each week, with many of its 33,000 employees instructed to remain at home until the situation is resolved. According to the report, prior to the incident, JLR was unsuccessful in securing a cyber insurance agreement that was being negotiated by Lockton, as reported by three sources from the cyber insurance market. Lockton is recognized as the largest independent insurance brokerage globally.
JLR has three factories in Britain, at Solihull, Halewood and Wolverhampton, which together manufacture about 1,000 cars per day. The cyberattack has led to disruptions at a time when Tata Motors has been seeing increased festive demand in India following the GST rate cuts. Tata Motors said it recorded 10,000 car deliveries and over 25,000 enquiries on the first day of Navaratri, marking a strong start to the festive season.JLR plays a crucial role for Tata Motors, accounting for 70% of the company's combined revenue.