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.
