Exclusive - Tata Motors Plots Comeback with New Nexon, Sierra, Avinya Brand and Compact Lifestyle SUV in Rs 35,000 Cr Overhaul

Tata Motors has outlined an aggressive mid-term plan to bridge critical product gaps across its portfolio, particularly in the ₹10–20 lakh price band and premium SUV segment, with a ₹33,000–35,000 crore investment over the next five years.

The company is lining up 30 new passenger vehicle models, including seven all-new nameplates, to reverse recent sales sluggishness and target an 18–20% market share by FY30.

The strategy is centred around expanding its presence in under-served segments—urban compact EVs, lifestyle SUVs, midsize family cars and premium electric SUVs—while refreshing its core ICE portfolio. The next phase will see Tata Motors move beyond volume-driven nameplates like Nexon and Punch to a more layered, multi-product strategy targeting specific use cases and customer profiles.

Autocar Professional learns the upcoming models include the facelifted Punch (Oct 2025), the all-new Nexon called Garud scheduled for H2 2026, the next-gen Harrier and Safari (called Taurus & Leo) planned for 2027, compact EVs Kuno and Terra, and a sub-4m lifestyle SUV called the Scarlett.

Range extender hybrid SUVs (REX/REV) are also being actively studied for a potential launch in 2027–28, say people in the know.

An email sent to Tata Motors did not elicit any response.

Shailesh Chandra, Managing Director – Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility recently told investors and media that the company will expand the nameplates from eight to 15. This includes the Sierra, two Avinya models, two new ICE products, and two new EVs. In addition, it will carry out 23 refreshes and facelifts.

The Rs 10–20 lakh range will be a key battleground as Tata addresses a segment where its presence has historically been limited. With new products like the Nexon replacement and the all new Sierra, the company hopes to gain share against competition from Hyundai, Mahindra, and Toyota. 

With Mahindra & Mahindra marching ahead in the SUV segment above Rs 20 lakh - Tata Motors is mooting a new platform that is likely to spawn an all new Harrier and Safari. The vehicle length may be increased by 100-200 mm. The vehicles may sport new silhouettes and will be high on tech and connectivity with four-wheel drive capabilities, say people in the know. 

On the EV front, Tata Motors plans to retain its leadership and regain lost share with a target of holding 50% share, having seen its market share drop to 35% in May 2025.

The company is adopting a three-tiered approach: entry-level EVs below ₹12 lakh offering ~200 km range; mid-segment EVs between ₹12–20 lakh with ~300–350 km range; and premium EVs above ₹20 lakh capable of 400+ km. Two differentiated products will be offered in each segment.

Chandra explained the strategy as 2-2-2 i.e. offer two offerings in each segment of the market – entry, mid and premium segment.  

Tata’s premium EV ambitions will materialize under the Avinya brand, which will house multiple Gen-3 electric vehicles starting in 2027. Built on a new platform, these EVs will offer long range, fast charging, and a software-rich experience. Two concepts have already been showcased and industrialization is underway.

A significant R&D thrust is also underway in the area of software-defined vehicles (SDVs). Tata is developing centralized computing, OTA updates, and ADAS systems under a new SDV architecture called Tidal. Over 100 engineers are working with Desay SV and group companies like Tata Technologies, Elxsi, and

TCS to enable next-gen digital cockpits and connectivity. Chandra admitted that model stagnation in the hatchback category had affected the company’s momentum, but said refreshed versions of Tiago and Altroz are already helping recover lost ground.

The Harrier EV, with deliveries expected to begin shortly, and Sierra EV in H2 FY26, are both key to the company’s premium EV strategy.

To support growing electrification, Tata Motors is investing in charging infrastructure, targeting 4 lakh chargers by 2030, including 500 high-capacity megachargers.

It is also working on improving home and workplace charging convenience. At the same time, it is developing hybrids for specific performance or competitive needs in premium petrol segments, although EVs remain the strategic core.

To ensure financial resilience, Tata Motors has set a target of 10% EBITDA across its PV and EV businesses. Network expansion on both sales and service fronts will accompany the product blitz to deliver a seamless ownership experience.

With a clear roadmap to bridge gaps, push premiumisation, and embrace digital and electric transformation, Tata Motors is aiming to reposition itself as a full-spectrum player in India’s fast-evolving automotive landscape. Whether this ambitious multi-front investment plan can help the company reclaim market share and challenge established rivals will unfold over the next five years.