Tata Motors is ramping up production of its highly anticipated Sierra SUV to meet overwhelming consumer demand, according to the company’s Passenger Vehicles CEO and MD, Shailesh Chandra. Deliveries of the new Sierra began on January 16, 2026, following an impressive 70,000 bookings since its announcement in December 2025. Chandra emphasized that production capacity would be increased in phases to keep pace with continued strong demand.
Tata Motors has started 2026 on a high note, building on the momentum from 2025. The facelifted Punch, launched recently, is also expected to become a top-seller, particularly in the subcompact SUV segment. Chandra highlighted that the post-GST 2.0 market surge has benefitted smaller vehicles, with subcompact and compact SUVs witnessing significant growth.
On the Sierra, Chandra noted that buyers are showing balanced interest across all trims, from entry-level to higher-end models, as well as across different powertrains, including petrol, diesel, and automatic options. The company’s strategy to offer diverse powertrain options is proving effective in catering to varied customer preferences.
Also Read: Tata Punch Facelift Launches Today With Updated Design, New Engines and Features
Electric and CNG vehicles are seeing rapid adoption, Chandra explained. CNG vehicle sales have grown nearly 25% industry-wide, while electric vehicle sales jumped around 75% last year. Tata Motors, with its multi-powertrain portfolio, is well-positioned to capitalize on this shift toward environmentally friendly vehicles.
Looking ahead, Chandra acknowledged potential challenges from upcoming CAFE 3 fuel-efficiency norms but said the industry, including Tata Motors, has actively engaged with regulators to ensure feasible implementation. On electric vehicles, he projected that market penetration could continue rising steadily as more players enter the segment, charging infrastructure improves, and price parity progresses. Tata Motors aims to achieve over 30% penetration in the electric segment by 2030, with industry-wide participation essential to reaching broader EV adoption goals.
The company expects FY26 to be a record year for the Indian passenger vehicle market, with sales projected to exceed 4.5 million units, driven by strong demand for new models, favorable policy conditions, and increasing consumer interest in sustainable mobility options.
Also Read: Kia K4 Sportswagon Unveiled: Europe’s Practical Powerhouse