Jaguar Land Rover Restarts Production After Cyberattack

Jaguar Land Rover (JLR), the luxury car unit of India’s Tata Motors, has begun a phased restart of its manufacturing operations following a cyberattack earlier this month, the company confirmed Monday. The resumption comes after the UK government announced a US$2 billion loan guarantee to support JLR’s supply chain during the production halt.

JLR operates three factories in Britain, producing roughly 1,000 vehicles per day. The shutdown, which affected the company’s 33,000 employees, is estimated to have cost the company at least £50 million (US$68 million) per week. JLR indicated that systems controlling global parts supply, vehicle wholesale, and invoice processing, are now operational.

Ratings agency Moody’s affirmed JLR’s Ba1 corporate family rating but revised its outlook from positive to negative. “The rating reflects that it will likely withstand the impact of the cyber incident. The outlook-change to negative from positive reflects our view that a full recovery in credit metrics will likely take several months,” said Sweta Patodia, Assistant Vice President and Analyst, Moody’s.

The cyberattack compounds ongoing challenges for JLR, which reported an 11% drop in quarterly sales in July. The decline followed temporary US export pauses amid tariffs on all car imports. While exports resumed in May, the company reduced its fiscal 2026 profit margin target to 5%-7% from 10%, citing continued uncertainty around US trade policies.

Meanwhile, Tata Motors itself is undergoing a major restructuring. Starting Oct. 1, the nearly 80-year-old automaker will split into two independent companies, separating its passenger vehicle (PV) and commercial vehicle (CV) businesses. The move is aimed at providing each unit with greater autonomy to implement tailored strategies and accelerate growth.

Shailesh Chandra, currently leading Tata Motors’ PV and electric vehicle divisions, will become managing director and CEO of Tata Motors and retain his role at Tata Passenger Electric Mobility. Girish Wagh, executive director at Tata Motors, will lead the newly formed CV entity as managing director and CEO.