Tata Motors Introduces AMT in Altroz to Attract First-Time Buyers

Tata Motors, which sees approximately a quarter of its premium hatchback sales come from automatic variants, has launched the first-ever AMT (Automated Manual Transmission) option for its Altroz model. This new addition broadens the Altroz lineup, which already includes DCA (Dual-Clutch Automatic) and manual transmission variants. The company views this launch as a crucial step to strengthen its position in the premium hatchback segment, a market where Tata has sold over one million units in the last three years.

In an interview with Autocar Professional at the Altroz Facelift launch in Mumbai, Shailesh Chandra, MD of Tata Motors Passenger Vehicles Limited, elaborated on how affordable AMT tech is a key part of the company’s efforts to recover lost ground in the hatchback segment. “By offering AMT as a cost-effective option, we’re catering to aspirational buyers who want modern features within a budget, thereby expanding the appeal of models like the Altroz. This strategic focus on AMTs positions us to capture a significant share of the automatic market, aligning with the evolving needs of India’s urban consumers.”

Chandra candidly spoke of the challenges faced by Tata Motors in the hatchback segment and said that though the company’s SUV portfolio has performed strongly, with Punch becoming India’s best-selling car in 2024, the hatchback range, including both Tiago and Altroz, saw a significant decline. “On the hatchback side is where we lost,” Chandra stated. “That is the only reason for us losing market share. The industry declined by 13%, we declined by 30% plus. Why? Because both Tiago and Altroz were aged. That is where we lost the maximum volume. Whilst we sold 70,000 cars (in FY23-24), it came down by half to 35,000. It was because of a lack of any intervention.”

The introduction of the facelifted Altroz along with an AMT variant for the first time is therefore a crucial mid-cycle intervention for the Altroz, aimed at bringing the model back to its original sales volumes and contributing to a strong bounce back for Tata’s hatchbacks.

Also, the AMT is aimed at first-time car buyers, who account for a significant 70 percent of Altroz buyers. For these buyers, an AMT offers an accessible entry into automatic driving without the higher cost associated with more advanced transmissions like a Dual-Clutch Transmission (DCT). As Chandra explained, “For somebody who’s wanting to experience automatic for the first time, AMT is a good option because it’s more cost-effective.”

As part of its multi-powertrain strategy—which includes petrol, diesel, and CNG options—Tata Motors is anticipated to introduce an AMT variant for the Altroz CNG later in the year. This builds on their existing AMT offerings in the CNG models Tiago and Tigor.

While Chandra did not officially confirm the immediate introduction of AMT in the Altroz CNG variant, he acknowledged its strong appeal to buyers seeking both the convenience of an automatic and the economic benefits of CNG. “At this stage, Tata Motors offers AMT exclusively with the petrol powertrain.”

For Tata Motors, the focus on AMT is to capture a substantial share of the premium hatchback segment by providing the convenience of an automatic transmission at a competitive price point. The base variant of the Altroz AMT has been launched at a very attractive introductory price of Rs. 8.29 lakh.