Tata Motors expects SUVs to take an even bigger share of its passenger vehicle sales as the company prepares to re-enter the mid-size SUV space with the new Sierra. Managing Director and CEO Shailesh Chandra told PTI that the SUV share in Tata’s overall lineup could climb past 70 per cent once the Sierra arrives in showrooms.
At the industry level, Chandra believes SUVs will eventually stabilise at around 55 to 60 per cent of total passenger vehicle sales. He added that GST 2.0 has given non-SUV segments a push, but the extent of their future growth will depend on the number of new models launched outside the SUV space.
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Tata Motors is
targeting the heart of the mid-size SUV market, currently dominated by the Hyundai Creta, Kia Seltos and Maruti Suzuki Grand Vitara, by reviving the iconic Sierra nameplate. The new model has been priced from Rs 11.49 lakh and will be offered with three engine choices: two petrol units and one diesel. An all-electric Sierra is also in the pipeline and is scheduled for launch in the next financial year.
Asked about the Sierra’s contribution to the brand’s SUV tally, Chandra said, “I believe that it can take us to 70 per cent-plus.” Tata’s SUV share currently hovers between 65 and 70 per cent. In October 2025, the company recorded retail sales of 75,352 units, up 13.52 per cent year-on-year, according to FADA.
Chandra credited GST 2.0 and the surge in compact and sub-compact SUV volumes for bolstering models like the Nexon and Punch. Looking ahead, he expects the Sierra’s positioning and features to deliver a strong incremental push. “With Sierra's strong value proposition… definitely it will mean a massive ramp up from where we were operating at 45,000 units a month,” he said.
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The company is also working on widening its reach in the passenger vehicle market. Chandra revealed that Tata Motors aims to expand its addressable market from 55 per cent to 80 per cent by entering fresh segments, adding more products and introducing all-wheel-drive systems in future offerings, including the Sierra.
(With inputs from PTI)
