Tata Motors buys out Jayem Auto stakes in JTSV: What this means for Tiago, Tigor JTP customers

Tata Motors Limited and Jayem Auto had entered into a 50:50 partnership in 2018 to make performance-oriented cars from their regular variants. The two products from this alliance were the Tata Tigor and Tiago JTP.

In March this year, we did a story on how Tata Motors dealerships weren’t selling JTP models anymore. The production seemed to have stopped as these dealerships claimed that they haven’t been receiving the cars from quite some time. At that point, Tata Motors had confirmed that it was indeed evaluating the business model for future emission compliance and other safety-related aspects. Another official statement has now been issued and it says that discontinued the venture. The venture that was a 50:50 partnership between Coimbatore-based Jayem Auto and Tata Motors Ltd has now been dissolved. Tata Motors will buy the remaining 50 per cent stakes from Jayem Auto, thereby ending the partnership in JTSV. The company further says that existing customers of Tiago and Tigor JTP cars will be given service support by Tata workshops. These though will again be supported by specific workshops that have been servicing the cars before.

Also Read Tata Tiago JTP BS6 unlikely

The Tata Tigor and Tiago JTP cars were launched in 2018 and thereon were given a refresh in 2019. Both the cars boasted a 1.2-litre BS4 turbocharged petrol engine that makes 115hp of power and 150Nm. A 5-speed manual gearbox was mated to these engines. The claimed mileage was around 20kmpl – perfect recipe to be a racer on the weekends and a family man on weekdays. Tata Motors had added dual airbags, ABS with EBD, rear parking sensors and more as standard safety equipment.

Why exactly didn’t the partnership bloom? It could be that Tata Motors has started building its own turbocharged petrol engines. These said 1.2-litre engine has been tuned now to make 120hp in the Nexon petrol. Given the low volumes generated by the JTP twins, Tata Motors might not have seen a business case there. Similarly, upcoming projects like the Tata Nano EV too were under Jayem Auto. It is unclear if these projects will be shelved or taken over by Tata Motors’ internal operations.

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