The loan guarantee is to help support it supply chain impacted due to the cyberattack, which has triggered a production shutdown for nearly a month now.
Reports indicate that some small suppliers of JLR have indicated that they have one week left at best, before running out of cash. JLR has three factories in the UK, which produce 1,000 cars daily cumulatively and sustain hundreds of jobs around Britain's second-biggest city, Birmingham.
The ministry has indicated that the loan will be privately financed and guaranteed by Britain's export credit agency UK Export Finance.
Tata Motors shares rose on Friday after declining over 5% in the previous two sessions, after the management told CNBC-TV18 that some operations at JLR are beginning to come onstream, but refused to share a timeline as to when will production resume.
Production at JLR is currently paused till October 1, and reports indicated that this could result in the luxury car maker footing a £2 billion bill as it was not insured against the cyberattack. That sum is higher than JLR's entire financial year 2025 profit of £1.8 billion.
The production shutdown, according to reports in the BBC, is already resulting in a loss of £50 million per week for JLR.
Tata Motors will also be sharing its sales update for September later this week. It had mentioned that the first day of Navratri resulted in over 10,000 deliveries and over 25,000 inquiries as the company slashed prices of its models after the GST rate cut on small and mid-sized cars and re-aligned for large cars.
Shares of Tata Motors ended 1.3% higher on Friday at ₹672.9. The stock has remained flat in the last one month
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