MUMBAI, June 14 (NNN-UNI) – India’s leading automobile company, Tata Motors, discontinued its joint venture by acquiring the balance 50 percent stake in JT Special Vehicles, and making it a wholly owned subsidiary, a company statement said Saturday.
Tata Motors will continue to provide all requisite support and service to customers and users of Tiago JTP and Tigor JTP cars, at their select dealerships, ensuring hassle-free ownership, the statement said.
The joint venture was formed in 2017, to develop high performance versions of Tata Motors passenger cars, under the JTP brand and subsequently in 2018, the Tiago JTP and Tigor JTP were launched.
The two cars 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, the statement said.
In light of this ongoing scenario, both partners in the joint venture that had revenues of 1.5 million U.S dollars in the previous year and dropped to below one million U.S. dollars in the just concluded year, found it prudent to discontinue this venture, the statement said.
Indian auto sector is already facing unprecedented challenge after sales growth declined by 18 percent last year and could see between 22-35 percent decline in various auto segment this year, according to Society of Indian Automobile Manufacturers.– NNN-UNI