Tata Motors shares gain nearly 2% as JLR gets UK govt loan guarantee after 'devastating' cyberattack; details to know

The loan will come from a commercial bank, backed by the Department for Business and Trade’s (DBT) Export Development Guarantee (EDG), provided by export credit agency UK Export Finance, to be paid back over five years.

The aim is to bolster JLR’s cash reserves following the production shutdown since early this month in the wake of the hack to help support firms in the supply chain, many of them small and medium enterprises (SMEs) struggling to stay afloat.

“This cyberattack was not only an assault on an iconic British brand but on our world-leading automotive sector and the men and women whose livelihoods depend on it,” news agency PTI reported, quoting Business and Trade Secretary Peter Kyle as saying.

“Following our decisive action, this loan guarantee will help support the supply chain and protect skilled jobs in the West Midlands, Merseyside and throughout the UK,” Kyle said.

The minister said it was a vote of confidence in the country’s automotive sector, which stands to benefit in the long term through “landmark trade deals”, including the Free Trade Agreement (FTA) with India.

“Jaguar Land Rover is an iconic British company which employs tens of thousands of people – a jewel in the crown of our economy. Today we are protecting thousands of those jobs with up to 1.5 billion pounds in additional private finance, helping them support their supply chain and protect a vital part of the British car industry,” said Chancellor Rachel Reeves.

The announcement follows a visit this week by Kyle and Industry Minister Sarah Jones to JLR’s Gaydon headquarters in the West Midlands region of England and a tour of JLR’s sunroof manufacturer, Webasto, to meet senior leaders and workers.

“With plants in Solihull and Wolverhampton in the West Midlands, plus Halewood in Merseyside, JLR is one of the UK’s largest exporters and a major employer – employing 34,000 directly in its UK operations. It also operates the largest supply chain in the UK automotive sector, much of it made up of SMEs, and employs around 120,000 people,” DBT said.

JLR cyberattack: What you need to know

Last week, Tata Motors-owned Jaguar Land Rover (JLR) said it had begun a phased restart of its IT operations following a cyberattack that had brought the British luxury carmaker's production to a complete halt earlier this month.

In an update issued on Thursday, JLR said it was working to clear the "backlog of payments" to its suppliers by increasing its processing capacity for invoicing.

Meanwhile, production at its factories in Merseyside, northwest England, and Solihull in the West Midlands, as well as facilities around the world, including in India, Slovakia and China, remains at a standstill until the "foundational work" of the recovery programme is completed.

"As part of the controlled, phased restart of our operations, we have informed colleagues, suppliers and retail partners that sections of our digital estate are now up and running," the JLR statement said.

"The foundational work of our recovery programme is firmly underway. We have significantly increased IT processing capacity for invoicing. We are now working to clear the backlog of payments to our suppliers as quickly as we can," it said.

JLR said its teams continue to work around the clock alongside cybersecurity specialists, the UK government's National Cyber Security Centre (NCSC) and law enforcement to ensure the restart of full operations takes place in a "safe and secure manner" following a "difficult time for all connected with JLR".

Tata Motors share price trend

Shares of the auto major have slipped 5% in the past five trading sessions (from Sept 22, 2025, to closing levels of September 26, 2025). Over the past 30 days, the stock has gained 0.8%, 0.3% in the past six months, and has slipped over 10% YTD. In the past 12 months, shares of the company have declined over 30%.