Tata Motors Ltd. (TML), India’s leading automobile company, recently signed an agreement to purchase the 50 per cent shareholding of Jayem Automotives in JT Special Vehicles Pvt. Ltd. (JTSV). Further to this announcement, JTSV will become a wholly owned subsidiary of Tata Motors, following the completion of the procedural requirements.
JTSV was formed in 2017 as a 50:50 joint venture between Tata Motors Ltd. and Jayem Automotives to develop high performance versions of TML passenger cars under the ‘JTP’ brand. The Tiago JTP and Tigor JTP that were launched in 2018, gained much appreciation for their styling and performance, forming a loyal follower base. 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. 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.
In April, Tata Motors Limited (TML), a leading automaker in India has decided to subsidersise TML’s passenger vehicle (PV) business including the electric vehicle (EV) by transferring relevant assets, IPs and employees directly relatable to the PV business for it to be fully functional on a standalone basis through a slump sale. While this announcement clearly states that every crisis is an opportunity. Many experts have opined on various forums that India will experience many mergers, JVs, buys etc.