Diluting the JV, Tata Motors has purchased 50% stake of its partner Jayem Automotives in its performance car joint venture JT Special Vehicles Pvt Ltd (JTSV), the company said.
Tata Motors Ltd (TML) and Jayem Automotives Pvt Ltd have discontinued their 50:50 joint venture as a result of tough market conditions, which impacted the demand for the niche vehicle category, the Mumbai-based carmaker said on Saturday.
Diluting the JV, Tata Motors has purchased 50% stake of its partner Jayem Automotives in its performance car joint venture JT Special Vehicles Pvt Ltd (JTSV), the company said.
“Further to this, JTSV will become a wholly owned subsidiary of Tata Motors, following the completion of the procedural requirements," the carmaker said in a regulatory filing.
Tata Motors has purchased 25 lakh shares of face value ₹10 each representing the 50% of the paid-up equity share capital of JTSV from its JV partner.
The JV was set up in 2017 by the two companies to jointly develop high performance versions of Tata Motors’ passenger cars under the JTP brand. Later in 2018, performance versions of Tiago hatchback (Tiago JTP) and Tigor compact sedan (Tigor JTP) were launched but failed to see many buyers.
“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," the carmaker said.
Tiago JTP and Tigor JTP were essentially the stylized versions with engines tweaked to deliver increased power output compared to the existing models. The company did not disclose the sales of the two performance models in the past 2 years.
JTSV’s turnover stood at ₹11.34 crore and ₹5.91 crore for FY2019 and FY2020 respectively.
Jayem Automotives is a Coimbatore-based independent research and development firm that is involved in design and development of vehicles and vehicle parts.
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