Six-digit bookings for the Sierra have shifted Tata Motors’ focus from demand generation to supply execution, with near-full plant utilisation and supplier constraints driving a phased capacity ramp-up.
05 Feb 2026 | 534 Views | By Darshan Nakhwa and Anurag Chaturvedi
Tata Motors Passenger Vehicles Ltd today said that bookings for its recently launched Sierra SUV have crossed the one-lakh mark, with the company now focused on ramping up production and strengthening supplies to meet strong demand.
“We had declared 70,000 bookings on day one. Bookings have been pouring in ...
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Tata Motors Passenger Vehicles Ltd today said that bookings for its recently launched Sierra SUV have crossed the one-lakh mark, with the company now focused on ramping up production and strengthening supplies to meet strong demand.
“We had declared 70,000 bookings on day one. Bookings have been pouring in and the number has become inconsequential because the focus is now on supply,” Shailesh Chandra, Managing Director and Chief Executive Officer of Tata Motors PV, said during a media call held to discuss the company’s Q3 FY26 performance. He added that bookings have moved into “six-digit numbers” and the production of the model is in the ramp-up phase.
The automaker is currently scaling output in phases while working closely with suppliers to ease component constraints. “We are in the ramp-up phase. Every month we are trying to get more supplies from suppliers. There are first-level challenges at the supplier end, especially for castings and some powertrain parts,” Chandra said.
The Sierra and the Nexon are produced at the same plant, requiring a balance of capacity between the two high-demand models. Tata Motors PV is therefore expanding supplier capacity as well as planning incremental capacity additions at its facilities to support higher volumes. “You will see continuous ramp-up of supplies from our end,” he said.
The company is preparing to increase production capacity over the next few months. Industry estimates suggest Tata Motors aims to scale Sierra output to around 15,000 units a month by March 2026 once supply constraints ease. That could translate into annualised volumes of over 1.5 lakh units once capacity stabilises.
Meanwhile, on the launch of the electric variant of the Sierra, Chandra said the company will review it as it ramps up capacity, but confirmed that the electric Sierra is targeted for launch in the first quarter of the next financial year.
Tata Motors launched the Sierra in November last year, marking the return of the iconic nameplate after more than three decades. The mid-size SUV is positioned in a highly competitive segment dominated by models such as the Hyundai Creta, Kia Seltos, Maruti Suzuki Grand Vitara and Honda Elevate. Within Tata’s lineup, it sits between the Curvv and the Harrier.
The model is offered with multiple powertrain options, including petrol and diesel variants, and is built on the company’s ARGOS architecture, which supports multiple body styles and powertrains.
Plants Near Full Capacity
Tata Motors said its passenger vehicle plants are currently operating close to full utilisation levels as demand across the SUV portfolio remains strong. The company is working on de-bottlenecking and capacity optimisation to increase output.
“We are working on production now, not on demand because demand is there. We are pretty much working at near full capacity in most of our plants,” Chandra said. He added that supply constraints are not limited to Tata Motors but are visible across the industry as overall passenger vehicle volumes have risen.
The Indian passenger vehicle market has expanded from monthly volumes of about 350,000 units to around 420,000-450,000 units in recent months, exposing supply-chain bottlenecks. “As the water goes down, more rocks appear on the supply chain side,” Chandra said, noting that component shortages have surfaced across multiple suppliers.
While the immediate focus remains on meeting domestic demand, Tata Motors continues to evaluate export opportunities for its passenger vehicle range. Chandra said the company is following a phased approach to international expansion, starting with right-hand-drive markets where its products are a natural fit.
The automaker entered South Africa this year and is exploring other markets in phases. Europe and the UK remain under consideration, particularly for electric vehicles, though detailed plans will be finalised once clarity emerges on the India-EU free trade agreement.
“Even without an EU FTA, we would have considered Europe for electric cars, but we are yet to get the details. Once those are available, we will have a sharper understanding of the opportunity,” Chandra said.