Tata Motors Passenger Vehicles Limited (formerly Tata Motors Limited) has reported significant operational challenges at its wholly-owned subsidiary Jaguar Land Rover (JLR) for the third quarter of FY26. The luxury automotive manufacturer continues to grapple with the aftermath of a cyber incident that severely impacted production and sales volumes.

Q3 FY26 Performance Hit by Cyber Disruption

JLR's Q3 FY26 performance reflects the substantial impact of the cyber incident that occurred earlier in the financial year. The company's sales figures demonstrate the severity of the disruption across both wholesale and retail channels.

*Calculated figures based on reported percentage changes

Production Recovery Timeline and Global Impact

Production at JLR facilities returned to normal levels only by mid-November following the cyber incident. The extended recovery period significantly affected the company's ability to distribute vehicles globally, creating a cascading impact on quarterly performance. All major markets experienced substantial declines in wholesale volumes during Q3 FY26.

Product Mix and Legacy Model Transition

Despite the overall volume decline, JLR maintained a strong focus on its premium model portfolio. The Range Rover, Range Rover Sport, and Defender models represented 74.30% of total wholesale volumes in Q3 FY26, an increase from 70.30% in Q3 FY25, though down from 76.70% in the previous quarter.

The planned wind-down of legacy Jaguar models ahead of the new Jaguar launch continued to impact volumes throughout the quarter, as expected by the company. This strategic transition, combined with incremental US tariffs affecting JLR's US exports, contributed to the overall volume decline.

Corporate Structure and Future Outlook

The results were announced by Tata Motors Passenger Vehicles Limited, reflecting the completed demerger that separated the passenger vehicle business from the commercial vehicle operations. JLR remains a wholly-owned subsidiary of this new entity, which is part of the broader Tata Sons group.

JLR has indicated that it will report its full financial results for Q3 FY26 in February 2026, which will provide additional insights into the financial impact of the operational disruptions. The company continues to focus on its electrification strategy and sustainability goals as part of its Reimagine transformation plan.

Tata Motors , the Indian multinational automotive manufacturing company, has announced that its subsidiary Jaguar Land Rover (JLR) will resume production operations from October 8, following a shutdown due to a cyberattack. Additionally, the company has introduced changes to its supplier payment structure to support the restart. However, JLR has also reported lower sales in Q2 due to multiple challenges.

Production Restart

JLR will begin a phased restart of its manufacturing operations, starting with:

1. Electric propulsion manufacturing centres in the West Midlands, UK on October 8.
2. Gradual resumption at stamping facilities in Castle Bromwich, Halewood, and Solihull.
3. Vehicle manufacturing in Nitra, Slovakia, and Range Rover production lines at Solihull.

The production had been halted since August 31 due to a cyberattack, reportedly causing losses of £50.00 million per week.

New Payment Structure

To support suppliers during the restart phase, JLR has introduced a fast-track financing scheme:

• Eligible suppliers will receive upfront cash, replacing the standard 60-day payment terms.
• The majority of payments will be made shortly after order placement.
• This change aims to improve cash flow for suppliers and enhance supply chain stability.

Q2 Sales Challenges

JLR experienced lower sales during a challenging second quarter. Tata Motors reported that its JLR division recorded retail sales of 85,495 units in Q2, representing a 17.10% decrease compared to the same period last year. The company's wholesale volumes also declined to 66,165 units, marking a 24.20% year-over-year decrease.

The sales were impacted by multiple factors including:

• A cyber incident that occurred in September
• The phase-out of older Jaguar models
• US tariffs that reduced sales volume

Market Response

Despite the announcement of production restart, Tata Motors shares traded 1.70% lower at ₹700.45, down 3.00% over the past month.

Implications

• Improved Cash Flow for Suppliers: The new structure could potentially improve cash flow for suppliers, as they will receive a significant portion of their payment earlier in the production cycle.
• Enhanced Supply Chain Stability: By providing earlier payments, JLR may be able to strengthen relationships with key suppliers and ensure a more stable supply chain.
• Working Capital Management: This change may require adjustments in JLR's working capital management strategies to accommodate the earlier outflow of cash.
• Sales Recovery: JLR will need to address the factors affecting Q2 sales, including mitigating the impact of the cyber incident and strategizing for the phase-out of older models.

Context within Tata Motors' Operations

While this announcement specifically pertains to JLR's operations and supplier network, it's worth noting that Tata Motors continues to show robust performance across its various segments. According to the latest SIAM (Society of Indian Automobile Manufacturers) report:

These figures demonstrate Tata Motors' strong presence in both passenger and commercial vehicle segments, underlining the importance of efficient supply chain management and production across all its operations.

The production restart, new payment structure for JLR suppliers, and efforts to address sales challenges align with Tata Motors' broader strategy of optimizing its global operations and maintaining strong relationships within its supply chain. As the automotive industry continues to face challenges and transformations, such measures could play a crucial role in ensuring resilience and competitiveness.