Tata Motors Slashes Jaguar Land Rover Margin Forecast After Cyberattack and China Headwinds

Tata Motors Passenger Vehicles has lowered its fiscal 2026 operating margin target for Jaguar Land Rover (JLR) following a disruptive cyberattack, compounded by soft demand in China and global chip supply constraints

The cyberattack in early September halted production at the UK’s largest carmaker for five weeks, prompting Tata Motors to take a one-time $228.5 million charge in the second quarter

JLR, which contributes the majority of Tata Motors’ profits, is also struggling with falling premium car demand in China and component shortages after chipmaker Nexperia B.V. signaled delivery uncertainties due to geopolitical tensions

As a result, JLR now forecasts an operating margin of 0% to 2% for fiscal 2026, down from the previous 5% to 7% target, and expects negative free cash flow of £2.2–2.5 billion ($3–3.4 billion), reversing earlier expectations of breaking even

JLR CEO Adrian Mardell confirmed that operations have largely resumed but did not provide further details on the cyberattack investigation. The recent quarterly results marked the first earnings report since Tata Motors separated its passenger and commercial vehicle businesses

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Despite a 22-fold surge in net profit for Tata Motors Passenger Vehicles due to an 826-billion-rupee ($9.4 billion) demerger gain, underlying performance showed a 6.37-billion-rupee loss, driven by a 24.2% drop in JLR wholesale volumes outside China

Mardell highlighted ongoing concerns over China, citing a recent luxury tax change affecting Range Rover sales. Analysts estimate the cyberattack alone cost the UK economy $2.55 billion, with JLR’s three British factories producing about 1,000 cars per day

Writer : Mweru Mbugua