Tata’s $75 Billion Meltdown: Visa Fee Hikes and Cyberattack Trigger Market Carnage
A perfect storm of regulatory headwinds and digital vulnerabilities just wiped out $75 billion from Tata's market valuation.
The Double Whammy
First came the visa fee increases—sudden regulatory changes that slammed Tata's global operations. Then the cyberattack hit, exposing critical infrastructure weaknesses that sent investors scrambling for the exits.
Corporate carnage doesn't get much clearer than this: when governments change the rules and hackers exploit the gaps, even industrial giants can't escape the bleeding.
Because nothing says 'stable investment' like watching $75 billion evaporate between bureaucracy and digital bandits—just another day in modern corporate finance.
Cyberattack cripples Jaguar Land Rover
Tata Motors also took a hit following a cyberattack that paralyzed operations at Jaguar Land Rover facilities. The luxury automaker later received support from the United Kingdom government for a $2 billion loan designed to help ease financial pressure on its suppliers.
The automaker has said vehicle production at its plants will not resume until October 1 at the earliest. Reports from the BBC indicate the shutdown is costing JLR around $50 million each week in lost output, with several smaller suppliers now facing potential bankruptcy. One analyst speaking to the Financial Times estimated the total revenue loss could reach $4.7 billion if JLR remains unable to manufacture vehicles through November.
The Financial Times reported that the impact on JLR’s bottom line will be worse because the company lacked insurance protection against cyberattacks and must absorb the complete cost.
Government steps in with emergency support
Business Secretary Peter Kyle announced on September 28 that the government agreed to support Jaguar Land Rover with a guarantee expected to provide up to £1.5 billion in financing to stabilize its supply network following the cyberattack.
The loan from a commercial bank, backed by the Export Development Guarantee provided by UK Export Finance, will be paid back over five years and boost JLR’s cash reserves to help suppliers hit hard by the shutdown.
Looking at the wider Tata Group, shares of 12 out of its 16 publicly traded firms have fallen this year. Tejas Networks has seen half its value disappear, while Trent and Nelco have each dropped nearly a third.
Ties between the United States and India have gotten worse over recent months as Washington put extra tariffs on Indian goods after New Delhi kept buying Russian oil.
In India, shares of technology companies fell after the United States announced its visa fee plans for bringing new workers into the country. The changes pose a major threat to companies in the technology and finance industries that depend heavily on highly skilled workers from abroad, especially from India and China.
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