- Jaguar Land Rover cyberattack rumbles on, with factories closed and supply chain disrupted
- UK Government exploring ways to support JLR suppliers facing severe financial strain
- Lack of cyber insurance leaves JLR exposed to billions in potential losses
Jaguar Land Rover could be facing the full financial impact of its recent cyberattack after reportedly failing to secure cyber insurance before the incident struck.
The attack, which came to light on September 2025, forced the carmaker to shut down its IT networks and halt production at its three UK factories.
The disruption is believed to be costing the company at least £50m in lost production every week, with estimates suggesting losses could run into billions if production does not resume until November 2025.
Cyber insurance discussions
A source has now told The Financial Times JLR, which is owned by India’s Tata Motors, was still in talks with broker Lockton about cyber insurance when the attack happened.
However, a second source close to Lockton denies this, saying the company had declined cyber-specific cover.
JLR and Lockton both declined to comment on the matter.
The fallout has rippled across the luxury carmaker’s supply chain, which supports about 200,000 jobs.
Smaller suppliers are under particular strain as they rely heavily on JLR contracts.
The UK government has so far resisted direct financial aid but ministers are reportedly considering unusual measures, including purchasing parts from suppliers to sell back to JLR, once production resumes.
However, as the BBC points out, “If the government were to step in, it is believed to be the first time that a company received help as a result of a cyber-attack.”
Some unions have urged a furlough-style scheme, but officials have dismissed this due to the high cost.
Instead, government-backed loans are being discussed, although suppliers aren’t keen to take on more debt.
The incident has once again highlighted the UK industry’s vulnerability to cyber attacks. Marks and Spencer and the Co-op were both famously hit in recent months, with the retail sector and manufacturing both under growing pressure to strengthen defenses.
The global cyber insurance market is forecast to grow sharply in the coming years, but many businesses aren’t keen to rack up additional expense.
JLR has confirmed its factories will not be in a position to restart operations until at least October, with some reports suggesting delays could extend longer.
An investigation into the source of the attack, which was claimed by Scattered Lapsus$ Hunters cybercrime group, continues.
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