TaMo braces for a big hit as group races to quell JLR hack

Cyberattack seen causing revenue loss of up to £2 billion as JLR did not have insurance

- Ayaan Kartik, Jas Bardia & Varun Sood

Since 31 August, the company has been unable to produce and dispatch cars to its dealers.

(REUTER)

Tata Motors Ltd is facing a big revenue hit from a cyberattack at its UK-based subsidiary Jaguar Land Rover (JLR) that halted production in a second disruption this fiscal, even as the group on Thursday managed to put some systems back online.

"Industry studies estimate that every hour of downtime in an automotive plant can cost between $1.5-2 million in lost output," said Harshvardhan Sharma, group head for auto tech and innovation at Nomura Research Institute Consulting & Solutions India.

The hack is expected to cause a revenue loss of up to £2 billion as JLR did not have insurance against the cyberattack, the Financial Times reported. When layered on top of tariff pressures and margin volatility, even a short disruption can distort quarterly performance and slow vehicle availability in export markets.