Industry

Tata Motors, Jayem Automotives end JTP venture

Tata Motors Ltd. (TML), has signed an agreement to purchase 50% shareholding of Jayem Automotives in JT Special Vehicles Pvt. Ltd. (JTSV) for an unspecified amount.

JTSV will become a wholly-owned subsidiary of Tata Motors, following the completion of the procedural requirements, the company said in a filing with stock exchanges.

JTSV was formed in 2017 as a 50:50 joint venture 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 were launched in 2018 and gained appreciation for their styling and performance, the company said.

“However, 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,” Tata Motors said.

“In light of this ongoing scenario, both Tata Motors and Jayem Automotives found it prudent to discontinue this venture,” the company said.

“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,” the statement added.

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Printable version | Jul 10, 2020 10:58:48 PM | https://www.thehindu.com/business/Industry/tata-motors-jayem-automotives-end-jtp-venture/article31824206.ece

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