TMG told AM that since its launch the business was faced with a highly competitive market that substantially reduced the prospects of future profitability.
Craig Stevens, group sales director at TMG, said: "We regret potential job losses as a result of TDS closing. However, it is the result of an important new strategic direction for TMG and Auto Trader to improve the performance, efficiency and structure of the group to meet the changing needs of its trade and consumer customers."
"We are committed to providing a range of core services that help dealers sell cars more profitably. To this end, we are making a massive investment in Auto Trader with a brand relaunch this month designed to attract more motorists to the magazine and website through out 'World of Cars Made Easy' campaign.
Sales of TDS have ceased immediately. Existing clients are being informed and will be given a two month period to change to a new supplier. Most clients can transfer easily to Experian.