By News Karnataka Editorial Team
Copyright newskarnataka
The United Kingdom government will extend a loan worth ₹17,733 crore (£1.5 billion or $2 billion) to Tata Group-owned Jaguar Land Rover (JLR) to help mitigate the impact of a cyberattack that has disrupted the automaker’s operations, according to a Bloomberg report.
Cyberattack impact on JLR
Jaguar Land Rover, one of Britain’s largest automotive companies, faced a major cyberattack earlier this year that significantly affected its production, supply chain, and internal systems. The disruption caused temporary halts at some manufacturing facilities, delayed deliveries, and forced the company to shift resources to recover critical IT infrastructure.
The cyberattack also placed pressure on the automaker’s finances, with analysts estimating losses running into several hundred million pounds. The fresh loan package aims to stabilise operations and ensure the company can meet customer demand without long-term disruptions.
Loan details and support
The £1.5 billion loan (equivalent to ₹17,733 crore) is expected to be disbursed in phases, tied to specific operational and recovery milestones. Sources indicated that the funds would be used to strengthen cybersecurity systems, restore production efficiency, and support Jaguar Land Rover’s transition to electric vehicles (EVs) in line with its long-term strategy.
The loan support reflects the UK’s recognition of JLR’s importance to the national economy. The company is not only one of the largest automotive employers in the country but also a key contributor to Britain’s manufacturing and export earnings.
Government’s rationale
Officials in London have emphasised that safeguarding JLR is essential given its supply chain linkages, employment generation, and the company’s role in advancing the UK’s EV and green technology ambitions. The loan will ensure that JLR’s EV projects, including its all-electric Range Rover and Jaguar models, stay on track despite the cyberattack setback.
Industry experts noted that the decision highlights how governments are increasingly stepping in to protect critical industries against cyber threats that have grown in frequency and scale worldwide.
Tata Group’s role
The Tata Group, which acquired Jaguar Land Rover from Ford in 2008, has invested heavily in modernising the company and expanding its electric vehicle portfolio. While the cyberattack temporarily derailed progress, the new financial support is expected to accelerate recovery.
Earlier this year, Tata Motors announced plans to build a £4 billion battery gigafactory in the UK to power its EV ambitions, a move seen as vital to securing JLR’s future in the highly competitive automotive landscape.
With the loan infusion, JLR is expected to focus on bolstering cybersecurity infrastructure, ensuring smooth production, and regaining lost ground in the premium car market. Analysts say the move provides breathing space for the company as it navigates a challenging global auto industry marked by supply chain bottlenecks, rising raw material costs, and growing competition in the EV sector.
