A major cyberattack is worrying Tata Motors. The impact is so big that it has affected the shares, causing the price to fall by 4% after the news broke. The attack was done on Jaguar Land Rover (JLR, which is owned by Tata), not on Tata Motors itself. JLR factories have stopped production as of now because the loss could be over £2 billion (about ₹21,000 crore). But one might wonder, why was the effect shown on Tata Motors? What is the company doing to fix the situation? Will the share price of Tata Motors continue to decline? Learn the details.
Why Is This Cyberattack So Serious?
JLR Production Stopped:
- The issue is so big that the company asked the production team to halt its operation until September 24.
- Later, the date was extended to October 1 because the issue wasn’t fixed.
- Since everything has stopped, practically, there are no sales and revenue for the company.
Weekly Losses:
- The company is taking weekly losses. According to JLR, it is losing approximately £50 million ($68 million, around ₹560 crore) every week due to the production halt.
- It has asked most of its employees (currently, there are about 33,000 employees on board) to stay home until the cyberattack problem is solved.
- Layoffs can be possible if the same financial situation continues.
No Insurance Coverage:
- Well, several companies opt for cyber insurance to safeguard themselves from losses due to such attacks.
- Apparently, JLR is still negotiating a policy with Lockton (it’s the world’s largest independent insurance broker). However, nothing is final yet.
- And so, JLR is bearing the entire losses.
The Scale of Loss:
- Notably, JLR made a good profit of £1.8 billion in FY2025 (Profit After Tax).
- Let’s say that if the cyberattack costs the company £2 billion (without any insurance), then the profit of the entire last year is wiped out, plus some more.
Impact on Tata Motors:
- JLR is a crucial part of Tata Motors. The company gave it a huge amount of money, say 70% of Tata’s total revenue.
- That is the reason why the shareholders are worried, and the price of its stock is coming down.
- And it is expected to go down more than 4%.
Stock Market Reaction (Tata Motors Share Price)
On the day of this news:
- The stock opened at ₹673 per share.
- It fluctuated between ₹675.35 and ₹655.30 on the BSE.
- That’s roughly a 4% fall in a single day.
According to Anshul Jain, Head of Research at Lakshmishree, Tata Motors, quoted by Mint, said, “A breakdown below this zone will accelerate selling momentum and likely drag the stock toward 608 in the coming sessions. Until it reclaims short-term averages decisively, the stock remains vulnerable to downside pressure.”
Shevaughn Pimenta
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