Tata Motors PV brings back the beast from the past to take on mid-size SUV rivals

The company launched the new Sierra on Tuesday, 22 years after it was discontinued because of low demand. Originally unveiled in 1991, the Sierra was the first SUV built by the Tatas and among the first made-in-India models in the category.

Starting at ₹11.49 lakh, the new Sierra will take on the Creta (starting at ₹10.7 lakh) from the country’s second-largest carmaker Hyundai, and the Grand Vitara (starting at ₹10.7 lakh) from market leader Maruti Suzuki. Tata’s Curvv has failed to challenge Hyundai’s domination in the mid-sized segment, which accounts for about a fifth of all 2.7 million SUVs sold in the country.

Tata Motors shares declined 1.59% versus a 0.23% fall in Nifty Auto on Tuesday.

The company needs a blockbuster product to build on the momentum, said Puneet Gupta, director at S&P Global Mobility, adding that this will help them hold on to their mid-size segment and challenge the dominance of other brands.

“Hyundai’s Creta and Kia’s Seltos are on their target, along with Maruti’s newly launched Victoris. For the Tatas, this launch is crucial as it looks to gain market share from its rivals," he said. “What remains to be seen is how Tata can maintain the momentum in the coming months, too, with new powertrain options."

The first vehicle launch by Tata Motors PV unit, after demerging from the commercial vehicle unit in October this year, signalled the high stakes. The company displayed 12 Sierras in red, yellow and silver finishes at the launch in Mumbai’s Bandra Kurla Complex.

“The mid-SUV segment has long been India's favourite. But in recent years, it has stagnated in terms of innovation. Even as the customer has evolved dramatically, today's buyers are willing to pay more for a richer experience," Shailesh Chandra, managing director and chief executive officer at Tata Motors PV, said at the launch of the vehicle in Mumbai.

“They want to premiumize their mid-SUV experience with more technology, more comfort, more refinement, and thoughtful design within the same footprint, and that is exactly where the Sierra fits in," Chandra said.

Martin Uhlarik, chief design officer; Mohan Savarkar, chief product designer; and Vivek Srivatsa, chief commercial officer at Tata Motors, were also present.

The race for No. 2

For Tata Motors, which is eying the second spot in India’s car market, the launch becomes even more crucial. In the first nine months of 2025, Hyundai ranked third with 425,330 sales, while Tata Motors snapped at its wheels with 410,155. The company is now challenging Hyundai’s highest-selling Creta.

Mahindra ranked second in the first nine months with 446,697. However, in FY25, Hyundai ranked second, Tata Motors third, and Mahindra was fourth.

“Sierra is one of the few nameplates in India that carries this emotional spirit. For those who grew up seeing Sierra in magazines, it represents the dream they once promised themselves," said Chandra. “For those who admired it on the road as young adults, it represents aspiration fulfilled."

Versatile platform

The new Sierra has been built on a new vehicle platform, ARGOS, which can support all types of fuel technologies, including electric vehicles, hybrids, CNG and internal combustion engines.

In an emailed response to Mint's queries, a company spokesperson said, “With its cross-generational appeal and elevated experience, the Sierra goes beyond what the current mid-SUV segment offers, creating an entirely new space — the Premium Mid-SUV category."

The company is gearing up to launch the electric vehicle version of Tata Sierra in the next financial year, the spokesperson said. “Our strategy is to offer a comprehensive choice across SUV segments — from compact SUVs like Punch and Nexon, to mid-size SUVs such as Curvv, to the premium mid-SUV Sierra, and large SUVs like Harrier and Safari."

Maruti, Hyundai are prepared

Toppling rivals in the category won’t be easy, according to analysts, as they, too, have ramped up their portfolio pipeline.

In September this year, Maruti Suzuki launched its new Maruti Victoris with prices starting at ₹10.5 lakh. The country’s largest carmaker decided to sell the mid-size SUV through its mass-market Arena dealership network instead of the premium Nexa outlets, a break from the approach it followed for its flagship mid-size SUV Grand Vitara.

The company aims to grow its market share in the category over the next few years, Hisashi Takeuchi, managing director & CEO at Maruti Suzuki, said at the launch.

“We are confident the Victoris, with its high technology, sleek design, intelligent and connected features, 5-star level safety and multiple environment-friendly powertrains, will win hearts in India," he said. “With Victoris, we are strengthening our SUV portfolio and our overall market share."

Hyundai, meanwhile, is confident that it will be able to defend its position in the market profitably through model upgrades and new launches over the next few years.

“Everyone has their own strategy, but ours is very clear," Tarun Garg, chief operating officer at Hyundai Motor India, told Mint in an interview earlier, pointing to the slew of model changes, derivatives, upgrades and new nameplates.

“I don’t agree that growth can come only from new nameplates. Creta has grown over 10% every year without relying on an all-new nameplate," said Garg, referring to Hyundai's volume-leader SUV. "For a listed company, it’s critical to drive incremental sales from existing models as well as new ones. Successful players reinvent existing models and expand powertrain choices."