Tata Motors Faces Financial Strain Amid JLR's Uneven Recovery Post-Cyberattack

Tata Motors Passenger Vehicles Ltd. (Tata Motors PVs) faces financial challenges as its outlook is downgraded to negative by S&P Global Ratings. The decision follows a slower-than-expected recovery at its subsidiary, Jaguar Land Rover Automotive PLC (JLR), post-cyberattack, though its long-term issuer credit rating is affirmed at 'BBB'.

The report highlights significant cash flow concerns due to prolonged operational disruptions at JLR after a cyber incident. Although production has restarted, the journey to full operational capacity is gradual. S&P Global expressed worry that this recovery delay might weaken Tata Motors PVs' credit metrics for an extended period.

Despite the hurdles, Tata Motors is poised to capitalize on domestic market demand, thanks to its diverse vehicle portfolio, including electric models. However, JLR's earnings stability remains uncertain given market conditions. S&P Global noted that a quicker recovery could stabilize its outlook, influencing future credit metrics positively.