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We attended the Tata Motors event of unveiling of TMPV’s all-new Sierra, which marked its entry into the mid-size SUV space (~23% share of overall SUVs, as of FY26YTD); TMPV currently has ~4.4% market share (Exhibit 1) in the space, driven solely by Curvv’s limited traction. This is in sharp contrast to its strong presence in Micro SUVs (Punch: 32.1% share) and Compact SUVs (Nexon: 24.4% share), both intensely competitive segments. As the company already commands ~74% share of its volumes in SUVs, Sierra adds the missing pillar in the portfolio. With minimum price at Rs1.149mn (ex-showroom Delhi), Sierra positions itself as a premium, lifestyle-focused mid-size SUV with a clean, modern design highlighted by slim LED tail-lamps and complemented by black ORVMs, gloss-black cladding, roof rails, and 19-inch dual-tone alloys. Inside, it features a tech-rich triple-screen layout—a 12.3-inch central touchscreen, a 12.3-inch passenger display, and a 10.25-inch digital cluster. The management sees the new Sierra as a crucial portfolio bridge to the fast-growing midsize SUV segment, with the model expected to lift SUV share from 16.9% to 20– 25%. Backed by strong post-GST demand momentum, TMPV targets doubledigit growth in FY26 and plans extending the Sierra lineup with EV/AWD variants. Given the category size and TMPV’s brand strength, Sierra has the potential to scale up to ~5k units per month, in our view, thus offering an upside potential to current estimates. Our estimates are unchanged; we re-iterate ADD on the stock and our TP of Rs400.

A premium lifestyle SUV to fill TMPV’s mid-size SUV gap

Sierra is positioned as a premium, lifestyle-oriented, mid-size SUV with a clean, modern design highlighted by slim LED tail-lamps and complemented by black ORVMs, glossblack cladding, roof rails, and 19-inch dual-tone alloys. Its cabin features a tech-forward triple-screen setup (12.3inch central touchscreen, 12.3inch passenger display, 10.25inch digital cluster), along with additions such as a panoramic sunroof, ventilated front seats, reclining rear seats, powered tailgate, 12-speaker JBL audio, HUD, wireless connectivity, Level 2 ADAS, and a 360-degree camera. Powertrain includes a 1.5liter NA petrol (104BHP), 1.5liter diesel (116BHP, 280Nm), and a 1.5liter turbo-petrol (158BHP, 255Nm) available with MT/AT, with a AWD variant in the pipeline (mostly planned for a Sierra EV).

Management eyes ~20-25% SUV market share with double-digit FY26 growth

The management highlighted that the Sierra fills a gap in the company’s mid-size SUV portfolio, giving a complete upgrade ladder from Tiago to Safari while entering the fastgrowing mid-size segment that sells ~40–45k units a month. The Sierra is expected to attract a new customer base and lift Tata’s SUV market share from 16.9% to ~20-25% (potentially targeting ~2% overall market share). Following the GST cut, market sentiment has turned sharply positive, with Sep–Nov delivering double-digit industry growth; TMPV targets double-digit growth in PVs for FY26. A Sierra EV is in the H1FY27 pipeline and an AWD version is planned, with TMPV viewing nostalgia-driven brand revivals like Sierra as a key opportunity going forward.

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