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26 September 2025

Jaguar Land Rover Battles Cyberattack Fallout As Recovery Begins

JLR restores key digital systems after a costly cyberattack, but production remains halted and suppliers face mounting pressure as government aid is still under discussion.

Jaguar Land Rover (JLR), the renowned British luxury automaker, is slowly emerging from the shadow of a catastrophic cyberattack that forced it to halt production and disrupt operations worldwide in early September 2025. As of September 26, the company has announced that parts of its digital infrastructure are back online, but its UK factories remain shuttered, and the financial toll continues to mount for the company and its vast network of suppliers.

JLR’s ordeal began at the end of August when a sophisticated ransomware attack—reportedly orchestrated by a group calling themselves "Scattered Lapsus$ Hunters"—crippled the automaker’s IT systems. According to CNBC-TV18, the hackers boasted about their intrusion by posting screenshots on Telegram, though JLR has not officially confirmed the perpetrators’ identity. The breach brought global production to a standstill, hobbled sales processing, and left logistics in disarray. The disruption, which has now dragged on for weeks, sent shockwaves through JLR’s supply chain and parent company Tata Motors, which relies on JLR for nearly 70% of its consolidated revenues, as reported by Business Standard.

Financial losses have been staggering. BBC estimates that JLR is hemorrhaging £50 million (about $68 million) every week, with the total cost of the attack potentially reaching $2.44 billion. If the company’s exposure proves uninsured, as some reports suggest, the impact could exceed JLR’s entire profit after tax for the financial year 2025, which stood at £1.8 billion.

JLR’s three main UK factories—Solihull and Wolverhampton in the West Midlands and Halewood in Merseyside—have been silent since the attack. The production pause, initially set to end on September 24, was extended again to at least October 1. Roughly 30,000 employees have been told to stay home, while another 100,000 workers in the supply chain face mounting uncertainty. JLR typically produces about 1,000 vehicles daily, so the ongoing shutdown is a blow not only to the company but also to the thousands of businesses that depend on its operations. As BBC notes, some suppliers work exclusively with JLR, making them especially vulnerable.

In the midst of this turmoil, JLR has made measured progress in restoring its core digital systems. “As part of the controlled, phased restart of our operations, today we have informed colleagues, suppliers and retail partners that sections of our digital estate are now up and running,” a JLR spokesperson confirmed to multiple outlets, including CNBC-TV18 and BBC. The company has significantly increased its IT processing capacity for invoicing and is now working to clear a backlog of payments to its roughly 700 direct suppliers. This is a crucial step, as many of these suppliers are facing severe cash flow problems due to the prolonged shutdown.

JLR’s Global Parts Logistics Centre has returned to full operations, allowing retail partners to continue servicing customer vehicles—a lifeline for dealerships and vehicle owners alike. Additionally, the automaker’s financial system for processing wholesale vehicle transactions is operational once again, enabling faster sales and registrations and helping to improve cash flow. “We are able to sell and register vehicles for clients faster, delivering important cash flow,” the company said in a statement shared with CNBC-TV18.

Despite these positive developments, the road to full recovery remains long and uncertain. Production lines are still idle, and JLR has not provided a specific timeline for when manufacturing will resume. Dedicated teams are working around the clock alongside cybersecurity specialists, the UK Government’s National Cyber Security Centre (NCSC), and law enforcement to ensure a safe and secure restart. The company emphasized that these are “important initial steps” and that “the foundational work of our recovery programme is firmly underway.”

The financial strain is not limited to JLR itself. Suppliers, many of whom are small businesses, are at risk of going under if the disruption continues much longer. The Business and Trade Select Committee in the UK Parliament has warned that some companies have only “weeks left” before serious financial disruption ripples through the car supply chain. According to BBC, the government is exploring several options to support these businesses, including the possibility of purchasing components from suppliers and reselling them to JLR once production resumes. However, suppliers have expressed skepticism about the scheme’s effectiveness, citing the immense complexity of automotive logistics. “We don’t need promises, we need help,” one supplier told the BBC, reflecting the growing frustration among those affected.

Unions have called for a Covid-style furlough scheme to protect jobs, but ministers have ruled this out due to concerns over the likely cost. Other proposals, such as government-backed loans to suppliers, have also met resistance from the industry. The government, for its part, insists it is working “24/7” to devise a viable support package. Prime Minister Sir Keir Starmer told the BBC, “I am acutely aware of the urgency of the situation and the difficulties that many of these companies are inevitably finding themselves, through no fault of course of their own.” Business Secretary Peter Kyle is said to be considering various schemes, but as of September 26, 2025, no concrete plan has been finalized.

Meanwhile, the cyberattack has prompted renewed scrutiny of JLR’s cybersecurity policies and insurance coverage. When asked about cyber insurance, the company declined to comment on commercial matters, according to CNBC-TV18. JLR has promised to update stakeholders on the financial impact of the breach in its next financial report. Industry observers, including those cited by Business Standard, have pointed out that the attack underscores the need for robust cyber risk management in the automotive sector, where digital infrastructure is increasingly vital to day-to-day operations.

For Tata Motors, the parent company based in India, the crisis has been a mixed bag. While its shares dipped 2.7% in the immediate aftermath of the attack, they rebounded by 2% after JLR announced progress in restoring digital systems, as reported by Business Standard. The Indian market remains a bright spot for JLR, with strong demand for models like the Defender and locally assembled Range Rovers helping to drive growth.

As the dust begins to settle, JLR’s focus remains on supporting customers, suppliers, colleagues, and retail partners. “We fully recognise this is a difficult time for all connected with JLR and we thank everyone for their continued support and patience,” the company said. With foundational recovery efforts underway and some digital operations restored, there is cautious optimism—but the automaker and its supply chain still face a challenging journey back to normalcy.