Tata Motors to Scale Up Sierra Production to 15,000 Units a Month as Demand Surges

Tata Motors Passenger Vehicles Ltd is set to significantly ramp up production of its newly launched mid-size SUV, Tata Sierra, following an overwhelming market response. The capacity expansion will be carried out in phases over the next six months, according to Managing Director and CEO Shailesh Chandra.

Industry sources indicate that Tata Motors aims to raise monthly production of the Sierra to around 15,000 units by March 2026, enabling the model to contribute over 1.5 lakh units annually once manufacturing stabilises.

Speaking about customer response, Chandra said buyers have strongly connected with the SUV’s design, features, and multiple powertrain choices. He described the demand as “overwhelming in a positive sense,” prompting the company to carefully scale up manufacturing to meet expectations. Production capacity enhancement has already begun and will continue progressively over the coming months.

Unexpected Diesel Demand

Chandra noted that the initial fuel mix has delivered a pleasant surprise, particularly for diesel variants. While diesel penetration in the segment typically averages around 35%, the Sierra is currently seeing diesel demand in the 35–50% range. He added that early launch trends often carry some volatility, and the final mix will become clearer over time.

Petrol variants are also performing well. Both the naturally aspirated (NA) and turbocharged TGDi engines are seeing strong traction, with the NA version currently accounting for a larger share of volumes. Demand, Chandra said, is evenly spread across entry, mid, and top trims, indicating broad-based acceptance.

Bookings Signal Strong Momentum

Launched in November, the Sierra generated massive interest from the outset. On the first day of bookings in December, Tata Motors recorded over 70,000 confirmed bookings, while an additional 1.35 lakh customers submitted configuration preferences, signalling intent to purchase.

The Sierra is offered with three engine options: a 1.5-litre Kryojet diesel, a 1.5-litre TGDi Hyperion petrol, and a 1.5-litre naturally aspirated Revotron petrol. Prices range from ₹11.49 lakh to ₹21.29 lakh for the top-end Accomplished Plus variant.

The model marks the return of the iconic Sierra nameplate after more than three decades, blending retro-inspired styling with modern technology. It is built on Tata Motors’ ARGOS architecture, designed to support multiple body styles and powertrain configurations.

Segment Competition and Future Plans

The Sierra enters the highly competitive mid-size SUV segment, competing with rivals such as the Hyundai Creta, Kia Seltos, Maruti Suzuki Grand Vitara, and Honda Elevate. Within Tata Motors’ portfolio, it is positioned between the Curvv and the Harrier.

The company has indicated that the Sierra platform could give rise to additional versions in the future, including a seven-seater, an all-wheel-drive variant, and a fully electric Sierra, expected within six months of the ICE version.

Customer deliveries are scheduled to begin on January 15, with Tata Motors aiming to translate strong booking momentum into sustained retail performance.