Tata Motors' JLR Faces Challenges: Secures £500 Million Loan and Reports Sharp UK Sales Decline
Jaguar Land Rover (JLR), a subsidiary of Tata Motors, plans to raise a private loan of up to £500 million to support suppliers and stabilize operations following a September cyberattack. This is in addition to a £1.5 billion UK government guarantee and a reported £2 billion in additional bank funding. JLR is initiating a phased production restart but expects full recovery to take until after Christmas. The company also reported a significant decline in UK sales for September, with JLR's sales dropping to 6,419 units from 10,807 units year-over-year.

*this image is generated using AI for illustrative purposes only.
Tata Motors , through its subsidiary Jaguar Land Rover (JLR), has announced plans to raise a privately arranged loan of up to £500 million to support its supplier base and stabilize operations following a cyberattack in early September that brought production facilities to a standstill. This comes as the company reports a significant decline in UK sales for September.
Financial Support and Recovery Plans
JLR's financial strategy to address the cyberattack impact includes:
| Measure | Amount | Purpose |
|---|---|---|
| Private Loan | Up to £500.00 million | Support supplier base and stabilize operations |
| UK Government Guarantee | £1.50 billion | Separate state-backed guarantee |
| Additional Bank Funding | £2.00 billion (reportedly) | Strengthen financial position |
The £500.00 million loan is separate from the £1.50 billion state-backed guarantee announced by UK government ministers. Additionally, JLR is reportedly seeking to raise an extra £2.00 billion from banks to bolster its financial standing.
Production Restart and Supplier Support
JLR has outlined the following steps to address the situation:
- Initiate a phased restart of its global production network
- Implement measures to support suppliers, including:
- A dedicated help desk
- Manual payment system
However, the company anticipates that full recovery is unlikely to occur before Christmas.
Market Impact and Sales Decline
The news of JLR's financial measures and production challenges has had a limited immediate impact on Tata Motors' stock performance. Tata Motors shares closed flat at Rs 716.00 on the BSE on Friday.
However, the company is facing additional challenges in the UK market. Tata Motors reported September UK sales figures for Jaguar Land Rover (JLR) at 6,419 units, down from 10,807 units in the same period last year. Land Rover specifically saw UK sales drop to 6,419 units from 8,993 units year-over-year, representing a significant decline in the British market for the luxury automotive brand.
This situation highlights the significant impact of cybersecurity threats on global manufacturing operations and supply chains, as well as the broader challenges facing the automotive industry. It also demonstrates the importance of rapid response and financial flexibility in mitigating such disruptions and addressing market fluctuations.
Historical Stock Returns for Tata Motors Passenger Vehicles
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.67% | +2.58% | +0.72% | +1.38% | -22.89% | +399.33% |
















































