Tata Motors shuts down performance car joint venture with Jayem Auto

Less than three years after setting up the joint venture Tata Motors has purchased the stake of its partner before shutting down the joint venture company that specialised in creating performance-oriented, low volume versions of its existing models.

JT Special Vehicles, a 50-50 joint venture company between Tata Motors and Coimbatore-based Jayem Automotives - founded by former race car driver J Anand, was set up in March 2017. The vehicles were sold under the ‘JTP’ brand

Tata Motors has informed the stock exchanges that it has signed an agreement to purchase the 50 percent shareholding of Jayem Automotives in JT Special Vehicles (JTSV). Further to this announcement, JTSV will become a wholly owned subsidiary of Tata Motors, following the completion of the procedural requirements.

“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”, said Tata Motors in a statement.

Tata Motors also added that it will continue to provide all requisite support and service to customers and users of Tiago JTP and Tigor JTP cars at its select dealerships.

On June 12 the board of Mahindra & Mahindra (M&M) took a similar decision wherein they decided shutdown a US-based company that designed, manufactured and sold electric two-wheelers under the Genze brand. M&M further stated that several more of its subsidiaries are under the radar for their continuity within the group.