Tata Motors shares turn weak as JLR extends production halt

Shares of Tata Motors declined by as much as 2% from the day's high on Tuesday as the impact of a cybersecurity breach at its UK-based luxury subsidiary Jaguar Land Rover (JLR) continued to weigh on market sentiment.

JLR, responsible for nearly 70% of Tata Motors' consolidated revenue, announced an extension of its ongoing production halt until Wednesday, 24 September.

Tata Motors stock slipped 2% from Rs 719.75 (day's high) to Rs 705 on BSE today. Market cap of the firm stood at Rs 2.61 lakh crore.   

The company stated, “We have taken this decision as our forensic investigation into the cyber incident continues, and as we assess the various stages of a controlled restart of our global operations, which will take time,” while apologising for the disruption and confirming that some data had been compromised. The incident has been reported to the relevant regulators, with JLR pledging to provide further updates as the investigation progresses.

The production and sales disruption comes at a critical time for JLR, coinciding with the start of September—a typically busy period due to the introduction of new vehicle registration plates in the UK. According to an earlier BBC report, the breach could be costing the automaker up to £5 million per day.

The company is already facing challenges including launch delays and slowing global demand, and the ongoing cyber incident adds further strain. The pause in operations has led to questions in the UK House of Commons, with the Business Minister declining to confirm or deny if the cyber attack was state-sponsored. As of now, JLR's operations remain partially suspended and investors are closely monitoring the situation for updates.

Market participants are awaiting further clarity on the scale of the data compromise and the financial implications for the group. The company’s statement underscored the complexity of resuming operations, as the forensic investigation and controlled restart of global operations continue to unfold. Regulatory authorities remain engaged as the matter develops, and the automaker has reiterated its commitment to keeping stakeholders informed throughout the process.