Tata Motors bets on hatchbacks as others steer away

Tata Motors Passenger Vehicles Ltd believes India’s hatchback market did not collapse because buyers abandoned small cars, but because carmakers abandoned small-car buyers by starving the vehicles of refreshes, new technologies, and premium features.

- Ayaan Kartik

PASSENGER VEHICLE

It is this ‘mistake’ that Tata Motors PV says it is trying to correct. Even as small-car giant Maruti Suzuki India Ltd and Hyundai Motor India Ltd have largely avoided significant refreshes in the category in recent times, Tata Motors PV has put out at least three major hatchback updates since the start of 2025.

These launches include facelifts and model upgrades for Tiago in January 2025, Altroz in May 2025 and Tiago EV in May 2026.

“What is important to recognize is that customers did not move away from hatchbacks, because for millions of Indian families, this is still where their first four-wheeler mobility journey starts,” said Shailesh Chandra, managing director and chief executive at Tata Motors PV.

“What has changed, however, is what the segment has been offering. So over time, we have seen that hatchbacks became more functional and less aspirational, and this created a clear gap between what customers were seeing elsewhere and what they were being offered in this segment,” Chandra said ahead of the launch of the upgraded hatchback Tata Tiago on Thursday.

Chandra said Tata Motors PV has learned from its mistake and is now looking to offer a combination of good features, safety and affordability in the segment.