Tata Motors Ltd. (TML) has signed an agreement to purchase the 50 per cent shareholding of Jayem Automotives in JT Special Vehicles Pvt. Ltd. (JTSV). One key reason attributed was Covid-19 impact.
JTSV will become a wholly owned subsidiary of Tata Motors, following the completion of the procedural requirements.
JTSV was formed in 2017 as a 50:50 joint venture between Tata Motors Ltd. and Coimbatore-based Jayem Automotives to develop high performance versions of TML passenger cars under the 'JTP' Brand under which Tiago JTP and Tigor JTP were launched in 2018.
The passenger car industry 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.
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.