Tata Motors plans to regain market share in hatchback segment this year

Tata Motors plans to regain market share in hatchback segment this year

Tata Motors currently accounts for 10.9% market share in the hatchback segment. The hatchback segment’s contribution to the Tata Motors' portfolio is less than 20%. In the December quarter of FY25, the company’s sales stood at 2,35,599 units.   

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The company unveiled a revamped version of its iconic SUV (sports utility vehicle) Sierra ICE at the Bharat Mobility Global Expo last week.  The company unveiled a revamped version of its iconic SUV (sports utility vehicle) Sierra ICE at the Bharat Mobility Global Expo last week. 
Astha Oriel
  • Jan 22, 2025,
  • Updated Jan 22, 2025 9:59 PM IST

Tata Motors' chief commercial officer, Vivek Srivatsa said the company is planning to regain market share in the small cars or hatchback segment this year with strategic focus and refreshes. 

“This year challenges have been in the hatchbacks. I think because of the rapid introduction of new models of EVs and SUVs, we could not devote enough time to the hatchbacks, and that is where we lost market share. This year, you will see a lot of activity on hatchbacks, and we will come back and gain market share there,” Srivatsa told Business Today.   

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According to Srivatsa, the company will be introducing refreshes of its existing hatchback portfolio. While the sales of the small car segment particularly hatchbacks have declined in the past year, the segment continues to be significant for Tata Motors, says Srivatsa.

“It is an important segment for us, we have two good products. We will undergo refreshes. We will have more refreshes coming in on Tiago and Altroz as well, and we want to strengthen that. So, the way we look at the small car segment is that it's a big part of the market despite some decline. There are a lot of other brands that have moved out, so it's a big opportunity for us,” notes Srivatsa.   

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Notably, Srivatsa observes that the entry price of hatchbacks has gone up significantly owing to safety and emission norms. “However, the hatchback segment is still a big part of the market. A first-time car buyer probably looks at a hatchback very strongly, then maybe decides something else. We are going to be very focused on gaining volumes,” Srivatsa added.  

Tata Motors currently accounts for 10.9% market share in the hatchback segment. The hatchback segment’s contribution to the Tata Motors' portfolio is less than 20%. In the December quarter of FY25, the company’s sales stood at 2,35,599 units.   

Srivatsa expects CY25 to be challenging for the automotive industry owing to a lot of stock at the dealerships. “It is also a year on the back of huge growth from FY22-23 onwards; the automotive category has grown at a very high pace. Now the growth is slowing down slightly. There is still growth, but you can't sustain that level of growth across the industry. Now, the industry itself has become fairly big. We're consistently looking at more than 4 million units in a year. So it will be a slightly challenging year, but there will be categories with high growth. CNG-powered vehicles will grow. I think it will also be the year where EVs grow a lot, because you have a lot of new models coming in, and the EV category will see good growth,” he said.   

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The company unveiled a revamped version of its iconic SUV (sports utility vehicle) Sierra ICE at the Bharat Mobility Global Expo last week.   

In 1991, Tata Motors gave India its first SUV in the form of the Sierra, under the leadership of the Late Ratan Tata. Sierra had been a trailblazer for Tata Motors in the past, with approximately 4,000 units sold during its peak in 1994-1995, as per industry estimates.   

However, the car was phased out in 2001 amid increasing competition.   

With the reintroduction of the Sierra, Tata Motors is making a big impact on the SUV space.   

“Sierra is a very iconic brand. We want to put the product out there... It will be a great practical car, but also a great performance-oriented car. We are not in a situation where we have decided how much we want to sell. We want to make a big impact in the SUV space, go back to our DNA of SUV performance, which it is known for and establish it strongly,” said Srivatsa.   

The company also unveiled the Harrier EV, the first electric mid-size SUV and the Avinya X concept, which will have a new line of premium EVs. 

Tata Motors' chief commercial officer, Vivek Srivatsa said the company is planning to regain market share in the small cars or hatchback segment this year with strategic focus and refreshes. 

“This year challenges have been in the hatchbacks. I think because of the rapid introduction of new models of EVs and SUVs, we could not devote enough time to the hatchbacks, and that is where we lost market share. This year, you will see a lot of activity on hatchbacks, and we will come back and gain market share there,” Srivatsa told Business Today.   

Advertisement

Related Articles

According to Srivatsa, the company will be introducing refreshes of its existing hatchback portfolio. While the sales of the small car segment particularly hatchbacks have declined in the past year, the segment continues to be significant for Tata Motors, says Srivatsa.

“It is an important segment for us, we have two good products. We will undergo refreshes. We will have more refreshes coming in on Tiago and Altroz as well, and we want to strengthen that. So, the way we look at the small car segment is that it's a big part of the market despite some decline. There are a lot of other brands that have moved out, so it's a big opportunity for us,” notes Srivatsa.   

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Notably, Srivatsa observes that the entry price of hatchbacks has gone up significantly owing to safety and emission norms. “However, the hatchback segment is still a big part of the market. A first-time car buyer probably looks at a hatchback very strongly, then maybe decides something else. We are going to be very focused on gaining volumes,” Srivatsa added.  

Tata Motors currently accounts for 10.9% market share in the hatchback segment. The hatchback segment’s contribution to the Tata Motors' portfolio is less than 20%. In the December quarter of FY25, the company’s sales stood at 2,35,599 units.   

Srivatsa expects CY25 to be challenging for the automotive industry owing to a lot of stock at the dealerships. “It is also a year on the back of huge growth from FY22-23 onwards; the automotive category has grown at a very high pace. Now the growth is slowing down slightly. There is still growth, but you can't sustain that level of growth across the industry. Now, the industry itself has become fairly big. We're consistently looking at more than 4 million units in a year. So it will be a slightly challenging year, but there will be categories with high growth. CNG-powered vehicles will grow. I think it will also be the year where EVs grow a lot, because you have a lot of new models coming in, and the EV category will see good growth,” he said.   

Advertisement

The company unveiled a revamped version of its iconic SUV (sports utility vehicle) Sierra ICE at the Bharat Mobility Global Expo last week.   

In 1991, Tata Motors gave India its first SUV in the form of the Sierra, under the leadership of the Late Ratan Tata. Sierra had been a trailblazer for Tata Motors in the past, with approximately 4,000 units sold during its peak in 1994-1995, as per industry estimates.   

However, the car was phased out in 2001 amid increasing competition.   

With the reintroduction of the Sierra, Tata Motors is making a big impact on the SUV space.   

“Sierra is a very iconic brand. We want to put the product out there... It will be a great practical car, but also a great performance-oriented car. We are not in a situation where we have decided how much we want to sell. We want to make a big impact in the SUV space, go back to our DNA of SUV performance, which it is known for and establish it strongly,” said Srivatsa.   

The company also unveiled the Harrier EV, the first electric mid-size SUV and the Avinya X concept, which will have a new line of premium EVs. 

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