Jaguar Land Rover (JLR) has entered its third week without producing a single car at any of its global factories following a major cyberattack on September 1. The hack has kneecapped JLR’s internal systems, causing shutdowns in production, parts ordering and retail operations, with losses estimated at up to Rs 60 crore a day.

1. JLR customer data supposedly stolen by a hacker group
2. No new JLR cars will be produced until September 24
3. Supplier bankruptcies and layoffs feared as the JLR operations shutdown drags on

How did the JLR hack begin?

Dealers couldn’t register new cars at the beginning of September.

The first signs of trouble cropped up on September 1, when JLR dealers were unable to register new cars on “new plate day”, traditionally one of the busiest dates for sales in the UK. JLR officially confirmed on September 2 that it had begun shutting down its systems to contain the cyberattack.

Group behind JLR hack burrowed into systems using a third-party software flaw.

On September 3, a hacker group calling itself Scattered Lapsus$ Hunters claimed responsibility for the JLR hack. This group also hit UK retail chain Marks and Spencer earlier this year, causing the retailer weeks of disruption.

In JLR’s case, the hackers are believed to have exploited a known flaw in the third-party SAP NetWeaver software the British carmaker uses for internal operations. The group also claimed to have procured JLR customer data, though the scale of the breach and whether a ransom demand was made remain unclear.

JLR yet to recover three weeks after the cyberattack

Production to commence only after September 24.

As of 15 September, JLR said it is still rebuilding its global systems and has yet to provide a timeline for full recovery. Not a single JLR car has rolled off the production line for the past two weeks, and this will continue until September 24 at the earliest.

JLR has confirmed that data was “affected”, which is thought to imply customer details were compromised. Police and cybersecurity experts have been brought in to help restore JLR operations safely.

Suppliers tied to JLR are in trouble.

The aforementioned JLR production shutdown has begun to impact the company’s supply chain, with suppliers facing severe stress due to halted orders and some even at risk of bankruptcy.

In a recent interview with the BBC, former Aston Martin CEO Andy Palmer warned that layoffs in the JLR supply chain are either already happening or being planned. Many suppliers initially absorbed losses but are now being forced to cut staff as the disruption drags on.