S&P Downgrades Tata Motors Passenger Vehicles Outlook to ‘Negative’ Following JLR Cyberattack

S&P Global on Thursday downgraded its outlook for Tata Motors Passenger Vehicles (TAMO.NS) to ‘negative,’ citing a slow recovery at the automaker’s key Jaguar Land Rover (JLR) unit. The UK-based JLR, Tata Motors’ primary revenue driver, experienced a cyberattack early last month that halted production for over three weeks and disrupted sales. Production has since resumed on a phased basis, but S&P warned that the path to full recovery remains uncertain.

Following the recent split of Tata Motors into separate passenger and commercial vehicle companies, the impact of JLR’s volume losses has become more pronounced. S&P noted that JLR is expected to contribute more than 80% of Tata Motors Passenger Vehicles’ earnings in the near term, making the recovery highly sensitive to both market conditions and lingering effects of the cyberattack.

S&P also downgraded JLR’s outlook to ‘negative,’ highlighting potential risks that could further affect earnings, including increased legal costs, brand reputation damage, and delays in launching new models. Additionally, U.S. tariff-related pressures and gradual ramp-up to full production capacity could pose further challenges for the automaker in the coming months.

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