**Tata Motors Shares Surge as Jaguar Land Rover Secures $2 Billion UK Government-Backed Loan**
Tata Motors’ shares saw a notable rise following news that its subsidiary, Jaguar Land Rover (JLR), has secured a $2 billion (1.5 billion GBP) loan. This privately financed loan is guaranteed by the UK’s export credit agency, UK Export Finance, aimed at supporting JLR’s recovery efforts after a major cyberattack in August.
**Addressing Operational Challenges Post-Cyberattack**
The cyberattack severely disrupted JLR’s operations, forcing the company to halt production and shut down IT networks. As a result, JLR has extended its production stoppage until next month, which could potentially lead to a loss of around £2 billion, as reported by the Financial Times. Notably, JLR was uninsured against such a cyberattack, meaning the losses could wipe out its entire profit for the fiscal year 2025.
Despite these challenges, JLR recently announced a phased restart of its operations, providing some optimism to investors. Following this announcement, Tata Motors’ shares increased by 1.45%, closing at 673.95 INR per share on Friday.
**UK Government-Backed Financial Support**
The £1.5 billion loan arranged through a commercial bank is backed by UK Export Finance and will be repaid by JLR over a five-year period. This financial package is part of a broader government-supported strategy to alleviate the strain on JLR’s suppliers, who were impacted by disrupted operations and delayed payments due to the cyberattack.
This government-backed financial aid is expected to facilitate a smoother and phased return to normal production and operational stability for Jaguar Land Rover in the coming months.
https://www.newsbytesapp.com/news/business/tata-motors-shares-jump-as-jlr-secures-2b-government-loan/story
