Mumbai, September 2025 — Shares of Tata Motors tumbled nearly 4% on Tuesday following reports that its UK-based subsidiary, Jaguar Land Rover (JLR), could face £2 billion in losses due to an ongoing cyberattack that has disrupted production and operations.
Cyberattack Impact on JLR
According to reports published by the Financial Times, JLR is grappling with the aftermath of a cyberattack that has halted operations across its facilities. The disruption, which began earlier this month, has already forced the company to extend its production suspension from September 24 to October 1.
The BBC reported that JLR is incurring losses of nearly £50 million ($68 million) per week, while many of its 33,000 employees have been instructed to remain at home until systems are restored.
No Cyber Insurance Protection
Adding to the gravity of the situation, JLR had reportedly failed to secure cyber insurance coverage, despite ongoing negotiations with Lockton, the world’s largest independent insurance brokerage. As a result, the company faces the risk of shouldering the full financial burden of the attack.
If JLR’s projected losses of £2 billion materialize, they would surpass the automaker’s FY25 profit after tax of £1.8 billion, effectively wiping out its annual earnings.
JLR’s Strategic Role in Tata Motors
JLR is a vital arm of Tata Motors, contributing nearly 70% of the company’s consolidated revenue. Any prolonged disruption to JLR’s production lines would therefore significantly weaken Tata Motors’ overall financial performance, investor sentiment, and long-term profitability outlook.
Tata Motors Share Price Movement
On the Bombay Stock Exchange (BSE), Tata Motors stock opened at ₹673 per share, hitting an intraday high of ₹675.35 and a low of ₹655.30. The stock closed nearly 4% lower as investors reacted to the mounting concerns around JLR’s crisis.
Technical Outlook
According to Anshul Jain, Head of Research at Lakshmishree, the stock has shown weakness after slipping below its 10- and 20-day exponential moving averages (EMA).
“Immediate support is placed near ₹650, which will be critical for bulls to defend. A breakdown below this zone could accelerate selling momentum and likely drag the stock toward ₹608 in the coming sessions,” Jain explained.
Jain added that until the stock reclaims its short-term averages decisively, it remains vulnerable to further downside pressure.
Investor Concerns
The unfolding situation highlights growing investor concerns over the cybersecurity preparedness of large multinational corporations. With JLR’s lack of insurance and mounting losses, the incident serves as a reminder of the potential financial consequences of cyberattacks in the global auto industry.
Conclusion
The potential £2 billion cyberattack hit for JLR has rattled investor confidence in Tata Motors, sending shares down 4%. With operations suspended until at least October 1 and weekly losses mounting, analysts warn that the company could face continued volatility in the near term. For Tata Motors, the crisis underscores the urgent need for robust cybersecurity and risk management strategies to safeguard its most critical revenue stream.
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