Tata Bets On Hatchback With New Tiago, Expands Affordable EV
Tata expects the hatchback segment to continue to be a critical alternative for thousands of first-time car buyers in the country.
Pune:Tata Motors, India’s biggest automaker by revenues, on Thursday introduced the next generation Tiago and Tiago.ev to tap the entry-level hatchback segment and expand the affordable EV market with aggressive pricing, premium technology, and three distinct powertrain options.
While the petrol version starts at Rs 4.69 lakh, the iCNG starts at Rs 5.79 lakh, and the Tiago.ev at Rs 6.99 lakh at the Mumbai showroom.
“The new Tiago brings together aspiration, practicality and advanced technology, delivering two distinct ownership experiences anchored in a common design philosophy,” Tata Motors said in a statement.
With an industry-first lifetime battery HV warranty, enhanced fast charging that adds 100 kilometres in just 18 minutes and running cost savings that recovers the vehicle's value within four to five years, the Tiago.ev is the first EV in India that is not just emotionally engaging but also financially smart,” said Shailesh Chandra, MD and CEO at Tata Motors Passenger Vehicles.
In a sub-Rs 12 lakh segment where EV penetration remains below 2 per cent, this is precisely the ownership proposition that will move the needle, he noted.
The new Tiago is powered by the same 1.2-litre, 3-cylinder petrol engine as before. This unit produces 85 BHP and 113 Nm and is paired with either a 5-speed manual or a 5-speed AMT.
The Tiago i-CNG uses the same 1.2-litre engine. It delivers 74 BHP in CNG mode and is available with both a 5-speed manual and AMT gearbox. The AMT version gets paddle shifters.
The Tiago.ev comes with two battery options: 19.2 kWh and 24 kWh. Lower variants with the smaller battery get a 61 BHP electric motor that delivers 110 Nm of torque, while higher variants have 74 BHP and 114 Nm. The claimed MIDC range is 226 km and 285 km for the 19.2 kWh and 24 kWh batteries, respectively.
Chandra said Tata Motors expects the refreshed Tiago to increase the share of hatchbacks in the company’s passenger vehicle portfolio to 20 per cent from the present 15 per cent.
“We will not increase our portfolio in hatches but we’ll be the last man standing with Tiago and Altroz,” he said, adding that the hatchback segment has stabilized after years of decline and can sustain itself if carmakers continue to bring meaningful upgrades with premium features.
Tata expects the hatchback segment to continue to be a critical alternative for thousands of first-time car buyers in the country.
Chandra assured that the company will continue to have upgrades in both Tiago and Altroz in the coming years, even though it may not add more models to its portfolio.
According to Chandra the hatchback segment has been most stable at about 1 million plus units in the country. “One million is a big size and as the Indian market grows, it will still be able to sustain this level of share,” he noted.
Hatchbacks in FY20 made up nearly 46 per cent of the passenger vehicles before it dropped sharply to around 23 per cent in FY25 and stabilized at about 21 per dent in FY26.
According to Chandra Tata Motors’ hatchback business outperformed the segment last year, growing 16 per cent, proof enough that with updates, it could grow in India.
