Tata Motors share price slumps 4% amid reports flag potential £2 billion cyberattack hit for JLR
Tata Motors shares fell 4% amid reports that Jaguar Land Rover faces £2 billion losses from a cyberattack, disrupting operations and leading to weekly losses of £50 million. The company had not secured cyber insurance and plays a crucial role in Tata's revenue.
Tata Motors share price dropped by 4% following reports in the Financial Times suggesting that its subsidiary Jaguar Land Rover is facing significant challenges due to an ongoing cyberattack, which could result in losses exceeding its total profit from the last financial year.
According to reports, the Financial Times suggests that JLR, a subsidiary of Tata Motors, may endure a financial impact of £2 billion, as it lacks insurance coverage against the cyberattack that has interrupted its operations and already caused monetary 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.
If JLR actually incurs a £2 billion loss, in addition to the ongoing losses from the production shutdown, this amount would exceed its Profit After Tax for the entire financial year 2025, which was £1.8 billion.
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 plays a crucial role for Tata Motors, accounting for 70% of the company's combined revenue.
Tata Motors share price today
Tata Motors share price today opened at ₹673 apiece on the BSE, the stock touched intraday high of ₹675.35 per share and an intraday low of ₹655.30 per share.
According to Anshul Jain, Head of Research at Lakshmishree, Tata Motors has rejected the upper end of its base around 720 and slipped below the 10- and 20-day EMA, indicating weakness in the near term. The stock is also trading under its 10- and 20-week EMA, further adding pressure to the structure. Immediate support is placed near 650, which will be critical for bulls to defend.
“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,” said Jain.
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