Tata Motors has diluted the Joint venture by purchasing the 50% stakes of Jayem Automotives in performance car JV, ‘JT special Vehicles Pvt Ltd (JTSV)’.
Tata Motors Ltd (TML) has purchased around 25 lakh shares of face value ₹10.Thus,making TML the sole owner of its subsidiary JTSV.
Jayant Automotive is a Coimbatore based company which is involved in design and development of vehicles and vehicle parts.
The event had happened because of the volatile market conditions which resulted in low demand of the particular vehicles from the joint venture.Thus, diluting the joint venture, Tata motors had purchased the 50% stakes of its partner, Jayem Automotives.
The Joint venture was structured back in 2017 to develop high performance versions of the existing/new Tata motors’ vehicles.The JTSV had also launched the high performance versions of Tigor (Tigor JTP) & Tiago (Tiago JTP) in 2018.Unfortunately, it didn’t attract many buyers.
Moreover, Tata motors will still provide hassle free service to the existing Tiago JTP & Tigor JTP at its select dealerships.
The turnover for JTSV also didn’t show impressive numbers for the FY’19 & FY’20.They stands at 11.34 cr & 5.39 cr, respectively.
The joint venture normally developed the high performance and stylized versions of the existing models with engine set to deliver more power output.