Tata Motors has decided to wind down the JTP edition cars from its lineup by acquiring 50 percent stake inCoimbatore-based Jayem Automotives. Tata had joined hands with Jayem in 2017 with a 50-50 stake partnership, entrusting them with making JTP editions of Tiago and Tigor, which were launched in 2018.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.
The JTP branded cars were meant to offer high-performance variants of specific Tata models but things have probably slowed down since the start of the lockdown and the disruption in the market caused by the pandemic. Tata feels the demand in the niche segment has slowed down, forcing them to cut their losses from the venture partnership.”In light of this ongoing scenario, both Tata Motors and Jayem Automotives found it prudent to discontinue this venture,” it noted.
However, Tata Motors has assured that existing JTP edition car owners will get the necessary service and support, available through select dealerships across the country. Tata Motors is one of the many brands in the Indian auto sector which has been significantly hit by the market trends over the past few months. They also had to shut down production for over a month, and buyer demand has failed to pick up in May, with many companies reporting over 80 percent sales difference for the same period compared to 2019.
The performance-driven editions of Tiago JTP and Tigor JTP with their turbo-charged petrol engines were priced higher than the regular variants but compared to other brands, these were the most affordable range of sport-centric four-wheelers you could buy in the country. While Tiago JTP was priced at Rs 6.39 lakh, Tigor JTP started at Rs 7.59 lakh.