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Tata's JLR Seeks £2 Billion Funding Following Cyberattack Shutdown; Share Price in Focus

Written by: Team Angel OneUpdated on: 29 Sept 2025, 4:32 pm IST
Tata’s JLR requests £2 billion in funding to recover from a cyberattack, while the UK backs a £1.5 billion loan to support suppliers and liquidity.
Tata's JLR Seeks £2 Billion Funding Following Cyberattack Shutdown; Share Price in Focus
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Jaguar Land Rover, owned by the Tata Group, is seeking urgent financial support of £2 billion after a severe cyberattack disrupted operations across key manufacturing hubs, halting production and causing massive financial strain.

JLR Halts Production and Seeks Emergency Credit

Jaguar Land Rover (JLR), Britain’s largest car manufacturer, experienced a crippling cyberattack in late August that forced it to shut down production in the UK, Slovakia, Brazil, and India. Operations at its China joint venture, however, continue uninterrupted. The company is now pursuing an 18-month credit facility of £2 billion from major global banks, including Standard Chartered, Citi, and MUFG, to maintain adequate liquidity during the shutdown, as per the news reports.

UK Government Provides Loan Guarantee to Support Suppliers

To ensure minimal disruption to the UK's automotive supply chain, the UK government has confirmed a guarantee for a separate £1.5 billion loan arranged by a consortium led by HSBC. Under the Export Credit Guarantee Scheme, 80% of this loan will be underwritten by the government. Suppliers have faced severe cash flow issues due to production halts, and this measure aims to sustain them until JLR operations resume.

Cyberattack’s Financial Toll on Operations

The cyberattack, claimed by a group called Scattered Lapsus$ Hunters, has reportedly halted all computer systems since September 1, causing estimated weekly losses of £50 million. The financial impact is projected to reach £3.5 billion in revenue and £1.3 billion in gross profit if production doesn’t resume before November. This exceeds JLR’s net profit of £1.8 billion for the financial year 2025.

Read More: UK Govt May Consider Financial Lifeline for JLR Suppliers Affected by Cyberattack Shutdown!

TCS Aids in Cyber Recovery and Engine Plant Set to Reopen

Group company Tata Consultancy Services is actively working to contain the damage. The £800 million digital transformation partnership signed in 2023 has proved vital in crisis response. JLR has prioritised customer services by resuming spare parts deliveries, while the engine plant in Wolverhampton is expected to reopen by October 6, pending tests for cybersecurity clearance.

Tata Motors Share Price Performance

On September 29, 2025, Tata Motors share price opened at ₹684.00 on NSE, above the previous close of ₹672.90. During the day, it surged to ₹685.00 and dipped to ₹676.25. The stock is trading at ₹678.40 as of 9:23 AM. The stock registered a gain of 0.82%.

Over the past week, it has declined by 3.27%, over the past month, it has declined by 1.70%, and over the past 3 months, it has declined by 1.40%.

Conclusion

The cyberattack has severely impacted Tata’s Jaguar Land Rover, pushing it to seek significant funding to address operational paralysis and supplier distress. With government backing and bank credit lines in place, the company aims to stabilise operations and resume normal production by November.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.

Published on: Sep 29, 2025, 11:02 AM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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