UK govt guarantees ₹17,733 crore loan for Jaguar Land Rover amid cyberattack Here's what we know

By Admin

29 Sep, 2025

The United Kingdom has stepped in with a major financial support package for Jaguar Land Rover (JLR), the Tata Group-owned automaker, after a cyberattack disrupted production and strained the company’s supply chain. According to Bloomberg, the UK government has guaranteed a £1.5 billion loan (₹17,733 crore or $2 billion) to JLR to cushion the impact on suppliers and protect jobs in the automotive sector.

Why the Loan Was Announced

The loan comes at a critical time after JLR was forced to halt production at plants in the UK, Slovakia, Brazil, and India earlier this month due to the cyberattack. The suspension not only impacted JLR’s operations but also created a ripple effect across the wider supply chain. Some vendors were left waiting for payments, while others had to send staff home.

The loan will be provided by a commercial bank and guaranteed by UK Export Finance, with a repayment timeline of five years. The aim is to ease the financial strain on suppliers, many of whom rely heavily on JLR’s production volumes.

A Lifeline for Jobs and Suppliers

JLR is Britain’s largest carmaker, directly employing 34,000 people in the UK, with an additional 120,000 jobs tied to its supply chain. The loan guarantee is expected to secure thousands of skilled jobs, particularly in regions such as the West Midlands and Merseyside, which are heavily dependent on the automotive sector.

Business Secretary Peter Kyle, who recently visited JLR’s headquarters and supplier Webasto, emphasized the government’s commitment:

“This loan guarantee will help support the supply chain and protect skilled jobs in the West Midlands, Merseyside and throughout the UK.”

JLR’s Response to the Cyberattack

On September 25, JLR announced that some of its systems were back online, allowing the company to:

• Clear a backlog of supplier invoices
  
  

• Accelerate distribution of parts to dealers
  
  

• Speed up vehicle sales and registrations
  
  

The automaker also revealed plans to restart some manufacturing operations on October 1, though it cautioned that a full return to normal operations will take more time.

Political and Economic Context

The Labour government’s decision to extend financial support also comes just ahead of its annual conference in Liverpool on September 28. Analysts suggest that this relief measure not only strengthens the automotive industry but also eases political pressure on Prime Minister Keir Starmer, as protecting jobs in manufacturing hubs remains a top priority.

Looking Ahead

While the cyberattack exposed vulnerabilities in the automotive supply chain, the UK government’s swift response highlights its recognition of JLR’s strategic importance to the economy. The loan guarantee provides a safety net for suppliers, ensures continuity of skilled employment, and allows JLR time to stabilize its operations.

As JLR works to restore full capacity in the coming months, the focus will be on strengthening cybersecurity resilience and rebuilding confidence across its global supply chain.