Automakers are stepping up the SUV game to break the market jam; Maruti Suzuki, Mahindra & Hyundai hope to distinguish themselves

Mumbai: Automakers in India are reshaping their product development plans and increasingly targeting the growing segment of SUV buyers amid escalating competition. With more than three dozen new SUV models and refreshes set to hit the market over the next five years, companies are focused on creating sharper differentiation through narrower pricing and positioning margins for their vehicles.With these initiatives, carmakers such as Maruti Suzuki, Mahindra & Mahindra and Hyundai Motor India hope to stand out in a market where every second car sold is an SUV.

Tata Motors on Tuesday introduced the Sierra SUV, reviving the iconic nameplate that was discontinued in the early 2000s. With a starting price of ₹11.49 lakh, Tata Motors hopes the Sierra will help it carve out a ‘premium mid-size’ niche within the crowded mid-size SUV space dominated by models like the Hyundai Creta, Kia Seltos, Grand Vitara and Toyota Hyryder.

According to Shailesh Chandra, MD and CEO, Tata Motors Passenger Vehicles, the idea is to do in the mid-range segment what the Punch model did for subcompact SUVs: create a clear differentiation through design, technology and positioning. With the new addition, Tata hopes to increase its market share in the SUV segment from the current 16-17% to 20-25%.

Despite monthly sales of around 45,000 units, Chandra said the mid-size SUV market has become a cluster of similar offerings with limited differentiation. The Sierra aims to bridge that gap by targeting a younger, more design-conscious buyer who wants to go beyond the mass mid-range segment but below full-fledged premium territory, he said. “There is a clear distinction between who buys a Harrier and who buys a Sierra,” he said, adding that the two Tata SUV models would appeal to different cohorts, limiting cannibalization and expanding the company’s reach. The new Sierra features a premium interior and the latest technologies such as optional triple screens, 5G and advanced driver assistance systems.

A few months ago, market leader Maruti Suzuki India introduced the Victoris – a feature-rich mid-size SUV aimed at young, ambitious Indian families and professionals – further intensifying competition in the segment.

The Sierra will initially be offered with one diesel and two petrol engines, followed by an electric version in the coming financial year.

According to the Society of Indian Automobile Manufacturers, of the 2.4 million passenger cars sold in the domestic market, 1.6 million or 66% were commercial vehicles comprising SUVs and MPVs.

A growing and diversifying SUV market is leading automakers to come up with their own product offensives. Maruti Suzuki India is lining up eight SUVs as part of its plan to regain 50% market share. Hyundai Motor India has built a pipeline of 26 models by FY30, including off-road vehicles and an MPV. Tata itself has seven new sub-brands in development by 2030. Honda is planning a major relaunch with at least 10 new models – including seven SUVs – while Toyota Kirloskar Motor is expanding capacity with the upcoming factory to take annual production above one million units.

Analysts say this increasingly detailed playbook is inevitable. Puneet Gupta of S&P Global Mobility said brands will need sharply defined identities and differentiated propositions as SUV penetration increases and displaces models at every price point.

According to people aware of the company’s plans, Tata Motors aims to produce around 10,000 units per month of the Sierra during the initial production run – a signal of confidence in the revived nameplate.

With the next five years set to be the busiest product cycle in Indian SUV history, the real battle will be over how accurately automakers carve out the segment – ​​and how sharply they execute the product identity to entice a new generation of buyers.