JLR could be losing up to £5 million a day in profit as it continues to suffer the consequences of a devastating cyber attack that shut down its operations on 1 September.
The shutdown of car production in the British firm’s two factories in the UK as well as those in China, India and Slovakia means an average loss of 1000 cars a day, based on normalised production figures, according to David Bailey, professor of business economics at Birmingham Business School. That equates to a daily revenue loss of around £72 million, which, based on current profit margins, could severely impact the company’s earnings.
There is still no date for when JLR will be able to resume production. “If output is suspended for much of September, then that could be a £150m profit hit for the firm,” Bailey said. “The longer the shutdown goes on, the bigger the hit to profit and the more likely it is that customers simply decide to go elsewhere.”
While there is never a good time for production to be hit, JLR is in the midst of a profit slump, with margins in the second quarter of 2025 dropping to 4.0% – down more than half from 8.9% during the same quarter the year before – after it was hit by US trade tariffs and slowing sales in China.
At the time of writing, Autocar understands that JLR plant workers are being told they should plan to return Monday 15 September after a two-week layoff – but restarting production is “a complex business”, Bailey said.
The attack has been claimed by a group of hackers calling themselves Scattered Lapsus$ Hunters, who posted pictures on the social media site Telegram purporting to show internal instructions for troubleshooting a car charging issue and internal computer logs.
The attack forced JLR to shut down its computer systems in an attempt to mitigate any data breach, which halted all production.
The slow nature of rebuilding these systems is what is causing the global delays. It is also affecting dealers, who are having to manually register cars, can’t order parts, can’t code new parts and in some instances are unable to complete customer handovers.
Despite the system shutdown, JLR last week admitted that data was “affected” following the attack. While it wouldn’t confirm further details, this suggests customer details were stolen.
Potential cyber attacks are at the forefront of the mind of every chief information officer (CIO) in the automotive industry. Every year, consultantcy Gartner runs a survey in which it asks them to rank their investment priorities, and Pedro Pacheco, its global senior director for automotive and smart mobility, told Autocar: “Cybersecurity usually comes number one or number two. It has been quite consistent for the past five years.
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