Tata Motors experienced a stock dip following a cyberattack on its UK-based subsidiary, Jaguar Land Rover (JLR). The cyber incident, which took place around September 1, 2025, led to a halt in production and disrupted JLR's IT systems, impacting facilities in the UK, China, Slovakia, Brazil, and India.

Impact on Tata Motors' Stock

Following the announcement of JLR's extended production halt due to the cyberattack, Tata Motors' shares experienced a decline. On the Bombay Stock Exchange (BSE), shares fell to an intraday low of ₹705, causing the company's market capitalization to drop to ₹2.61 lakh crore. Although the stock recovered slightly to ₹710 apiece, this still reflected a 0.38% decrease. On September 24, 2025, Tata Motors' shares slipped 2.05% to Rs 687.10 after reports indicated that JLR would keep its factories closed until October 1, 2025.

JLR's Production Halt and Financial Implications

JLR's production shutdown, initially expected to last until September 24, 2025, was extended to October 1, 2025, due to the ongoing cyber investigation and controlled restart efforts. The company has shut down its IT networks in response to the attack. Industry sources have warned that the disruption could last into November. The disruption has affected not only vehicle production but also the ability of dealerships to register vehicles or order spare parts, and even impacted diagnostic software. The cyberattack is estimated to be costing JLR £5 million per day. This figure accounts for potentially lost revenue, disrupted production, and the costs associated with resolving the cyberattack.

Broader Economic Impact

The production halt has far-reaching consequences beyond Tata Motors and JLR. The ripple effects have hit the supply chain, with nearly 200,000 jobs at risk across hundreds of supplier firms. Some suppliers have already paused production and laid off workers. The British government is reportedly considering plans to mitigate the effect of the production freeze and protect manufacturing jobs, including potentially buying parts from JLR's suppliers.

Cybersecurity Measures and Investigations

JLR is currently conducting a forensic investigation of the cyber incident, working with third-party cybersecurity specialists to restore its global applications in a controlled and safe manner. The company has invested heavily in cybersecurity, including an £800 million contract with Tata Consultancy Services in 2023 to strengthen its IT systems. Officials from the National Cyber Security Centre are assisting JLR with their investigations.

Hacker Group and Data Breach

A hacker group known as "Scattered Lapsus$ Hunters" has claimed responsibility for the cyberattack. The group, described as English-speaking teenagers, allegedly accessed JLR systems and leaked internal troubleshooting instructions and computer logs. While JLR initially stated that there was no evidence of customer data being stolen, the company has since acknowledged that "some data" was impacted.

JLR's Financial State

The cyberattack compounds an already difficult environment for JLR, which recently reported weaker profits due to higher U.S. tariffs. In the first quarter of FY26, Tata Motors reported a 62.7% decline in consolidated net profit to Rs 3,924 crore, compared to Rs 10,514 crore in the first quarter of FY25. Revenue from operations also fell 2.5% year-over-year, impacted by volume decline in all businesses and a drop in profitability primarily at JLR.