Owing to poor response of its performance cars coupled with Covid-19 impact, Tata Motors said that it has signed an agreement with Coimbatore-based Jayem Automotives to buy out the 50% stake of the latter in the joint venture — JT Special Vehicles (JTSV) — for an undisclosed sum. Tata Motors said it would be purchasing of 25,00,000 shares of the face value of Rs 10 each, representing 50% of the paid-up equity share capital of JTSV from the JV partner, thereby making JTSV a wholly-owned subsidiary of the company. For the fiscal 2019, the JV reported a turnover of Rs 11.34 crore, whereas it was Rs 5.91 crore in FY20. Tata Motors said JTSV was formed in 2017 as a 50:50 JV between Tata Motors and Jayem Automotives to develop high performance versions of TML passenger cars under the ‘JTP’ brand. The Tiago JTP and Tigor JTP that were launched in late 2018 gained much appreciation for their styling and performance, forming a loyal follower base. “However, the passenger car segment witnessed a challenging FY19-20, exacerbated with mandatory change in regulations and the current Covid-19 pandemic, which has impacted the demand in this niche category of vehicles,” Tata Motors said.
“In light of this ongoing scenario, both Tata Motors and Jayem Automotives found it prudent to discontinue this venture. Tata Motors will continue to provide all requisite support and service to customers and users of Tiago JTP and Tigor JTP cars at its select dealerships, ensuring hassle -free ownership.” Tata Motors had stopped producing these two performance models a few months ago due to changing emission norms as well as poor consumer response.
Jayem Automotives is an automotive company with expertise in design, development, prototyping and production of performance variants of automobiles. It also built the MRF2000, a Formula 1 racing car. The Tiago JTP and Tigor JTP were made available in late 2018 at select Tata Motors dealerships at Rs 6.39 lakh and Rs 7.49 lakh, respectively.