The company is foraying into the mid-size SUV segment currently dominated by Hyundai Creta, Kia Seltos and Maruti Suzuki Grand Vitara by bringing back the popular brand of yesteryear, Sierra, in a new avatar with introductory prices starting from Rs 11.49 lakh, available in three engine options – two petrol and one diesel.
The electric version of the Sierra will be launched next financial year.“I believe this can take us to more than 70 percent,” Chandra said when asked how the Sierra could increase the contribution of SUVs to the company’s overall sales.
Right now, he says it’s about 65 to 70 percent. In October this year, the company’s total retail sales stood at 75,352 units, up 13.52 percent compared to 66,903 units in the same month last year, according to FADA data. “Post GST 2.0, I think the volume of compact SUV segment and sub-compact SUV segment has really increased significantly. Since we were the market leaders in this segment with Nexon and Punch like vehicles, this gave us the boost we were waiting for,” Chandra said.
Additionally, he said, “With Sierra’s strong value proposition, depending on how much volume we get, this will certainly be a huge increase from where we were previously operating at 45,000 (units per month). I think we’ve done our homework.”
Chandra also said that overall, the company wants to increase its reach from the current 55 percent to 80 percent of the passenger car market. It will look to fill gaps by entering new segments and expanding its product range, while also working towards introducing all-wheel drive mechanisms in future models, in addition to the Sierra.
While bringing back the Sierra, he said the company needed to reimagine it to make it relevant not just to Generation X, but more to Generation Y and Generation Z.
“When we reimagined this in its new avatar, we said, we have to build this fusion of originality by making it similar to what the original Sierra stands for, but also making it very modern, also to be relevant to Gen Y and Gen Z,” Chandra said.
The company decided to position it in the mid-size segment which is “becoming the sweet spot of the market because the footprint is just good enough to offer a very spacious size” and brought in a next-level tech stack such as a triple-screen infotainment system, 5G connectivity and level two plus ADAS (Advanced Driver Assistance Systems) to appeal to Gen Y and Gen Z “who lead a very digital life,” he added.
Bookings for the Sierra will begin from December 16 and deliveries will commence on January 15, 2026.
When asked about the impact of GST rate cuts on hatchback sales, Chandra said, “Yes, we saw a significant increase in the volumes of both Tiago and Altroz, but we saw a bigger increase in compact SUVs and sub-compact SUVs.”
He said there is a trend and ambition among people to opt for SUVs: “If there is an SUV option at the same price, people prefer it and that is very clear.”
Chandra further said that the domestic PV industry has witnessed a growth of 5 percent and 17 percent respectively in the last two months and “this month could also see double-digit growth for the sector.”
“So if the industry continues to grow well, there will be scope for both SUVs and hatchbacks because after the GST cut, even hatchbacks, MPVs and the like have increased in volume, but since there is more launch activity in the SUV space, they should strengthen from where they are now, which is 55 percent,” Chandra said.
Total passenger sales in October this year stood at 5,57,373 units as per FADA data.
#Expect #SUV #contribution #total #sales #cross #Tata #Motors #Passenger #Vehicles #CEO #Shailesh #Chandra