Tata Motors on Saturday announced that it was buying out its partner Jayem Automotives in their joint venture JT Special Vehicles Pvt Ltd that develops high-performance vehicles. The company has inked a pact to acquire 50 per cent stake of Jayem Automotives in JT Special Vehicles Pvt Ltd (JTSV), Tata Motors said in a statement.
JTSV will become a wholly-owned subsidiary of the auto major after completion of the procedural requirements, it added. It was formed in 2017 as a 50:50 joint venture between Tata Motors and Coimbatore-based Jayem Automotives to develop high-performance versions of Tata passenger cars under the JTP brand. The Tiago JTP and Tigor JTP were launched in 2018 as part of the collaboration.
However, with mandatory changes in regulations and subsequent coronavirus pandemic, demand for the niche vehicles declined, Tata Motors said. "In light of this ongoing scenario, both Tata Motors and Jayem Automotives found it prudent to discontinue this venture," it noted.
The company 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, it added.