Tata Motors shares in focus as reports indicate JLR cyberattack can result in £2 billion bill

Shares of Tata Motors Ltd., the passenger and commercial vehicle manufacturer will be in focus on Thursday, September 25, after reports in the Financial Times indicate a big hit to its unit Jaguar Land Rover due to the ongoing cyberattack issue.

The FT report indicates that JLR, the Tata Motors subsidiary, is likely to be hit with a £2 billion bill as it was not insured against the cyberattack that has disrupted operations and has already resulted in financial losses.

After first extending the production pause till September 24 due to the cyberattack, the pause was then extended by JLR till October 1. While the company has not officially quantified the financial loss that it is incurring due to this halt in production, BBC reports suggest that it is losing £50 million or $68 million a week, with many of the 33,000 staff told to stay home till the issue is resolved.

Ahead of the incident, the report also states that JLR failed to finalise a cyber insurance deal which was being brokered by Lockton, citing three cyber insurance market sources. Lockton is said to be the world's largest independent insurance brokerage.

JLR is a very important component for Tata Motors as it contributes to 70% of the company's consolidated topline.

Tata Motors recently announced that it delivered over 10,000 vehicles on the first day of Navratri and also had over 25,000 inquiries, indicating a strong start to the festive season. Auto companies will be reporting their sales data for the month next week.

Shares of Tata Motors have declined in four out of the last five trading sessions, and also ended 2.6% lower on Wednesday at ₹682.95. The stock has remained flat in the last one month.