Description: Tata Motors President Shailesh Chandra speaks to Autocar India at the launch of the new-generation Tata Tiago and ...
What Shailesh Chandra said
Written from the verified transcript and checked against it. Every figure links to the moment it was said.
Shailesh Chandra discussed the launch of the new Tiago, emphasizing that hatchbacks remain relevant if updated, citing a 20% growth in Tiago sales despite a 3% decline in the hatch segment in FY26. He explained the Tiago EV's focus on price over range, based on learnings from 75,000 customers, and noted that 70% of Punch buyers are first-time buyers, with minimal cannibalization due to a 1.5 lakh price difference. Chandra projected the hatch market to stay around 1-1.3 million units by 2030. He stated EVs currently make up 15% of volume and 20% of revenue, with May bookings at nearly 30% of demand, and aims to increase EV supply by 50% in 3-4 months. He expects EV penetration to reach 7.5-8% by fiscal year end. On exports, he mentioned growing exports fourfold and entering 3-4 new markets in two years, while capacity expansion of 300,000 units is underway. He acknowledged service issues and detailed actions taken, including adding 1,500-1,600 service bays.
Key takeaways
Tiago sales grew 20% in FY26 despite a 3% decline in the hatch segment, proving updates can revive demand.
EV bookings in May were nearly 30% of demand, up from 15% of volume, with plans to increase supply by 50% in 3-4 months.
EV penetration could reach 7.5-8% by end of fiscal year, even if oil prices stabilize.
Exports grew fourfold last year, with 3-4 new markets targeted in the next two years.
Capacity expansion of 300,000 units is planned over 2-3 years, with current plants near full capacity.
Tata Motors has launched Tiago in a completely new avatar and I have the pleasure of speaking to Mr. Shailesh Chandra. Thank you so much, sir, for taking time out for us. Tiago's launch is an exciting product with lots of new developments. I want to first understand what you have tried to give with this new Tiago.
You see, Tiago has been a very popular car in the hatch segment since we launched in 2016. It's known for stunning design, safety, and packing more features than what you see in the segment. That is the philosophy on which Tiago has been in the market. It has very good acceptance, including multiple powertrains. With the new Tiago, we observed that updates and features are coming faster in the SUV segment, but in hatches it's been a bit slow. We realized customers might not have moved away from hatches; it's the lack of updates that would have made them move away. Proof came when we refreshed Tiago in January 2025 for the model year. While the hatch segment declined by 3% in FY26, we grew by 20% in Tiago. It shows that if you give an update, people still accept this body style. So we are making the experience more modern: new exterior design elements like lighting, bolder stance, and a completely transformed interior with features you'd find in a car double the price. We've given equal importance to the rear seat because in small cars, families sit there. We retain the multi-powertrain options: petrol, CNG, and electric.
You know, with the Punch EV you increased the battery size, but we haven't seen that in the Tiago EV. What's the thinking behind that? Was it a constraint due to the car's size?
Great question. With Punch EV, we talked about low penetration in vehicles under 12 lakhs. The cost benefits from subsystem work and localization we directed in two ways: increasing range and reducing price. That made Punch versatile. With Tiago EV, we had learnings from 75,000 customers over four years. They use it as an intense city car, a second family car, or for predictable long-distance running up to 150 km per day, where they can charge at the destination. For them, fit-to-purpose means a more aggressive price rather than maximum range. So we optimized for that, and we wanted distinct roles for the two products.
Actually, I'd say 70% of Punch buyers are first-time, and it's higher for Tiago. The price points differ by about 1.5 lakh, which is significant in this segment. There will be some overlap from customers who wanted a hatch but moved to Punch, but that's small. The larger increment for Tiago will come from other hatches in the market.
In FY26, hatches retained a 21% share of total industry volume, and they grew in the second half. The decline has stabilized. The hatch market is about 1 million units. With India's PV industry growing at 6-8% secularly, by 2030 it could be a 6-6.5 million market. Even if hatches lose share, it will remain around 1-1.3 million. So it's sizable, and we will keep investing in existing hatchbacks but not expand the portfolio.
Let's talk about your powertrain mix. What is it currently and how do you see it changing, especially with the Middle East crisis and trends toward EVs?
Today, about 15% of our volume and 20% of revenue come from EVs. Our mix is 15-16% more due to supply constraints than demand. With the recent fuel price rises, in May our EV bookings were nearly 30% of demand. If we could increase supply, we could double EV sales, potentially reaching 30% in the short term, but we need to see if the emotional response stabilizes. We are enhancing capacity and have new EV models coming. We're on track for our committed 30%+ in 3-4 years.
We are supplying about 9,000-10,000 EVs per month. Internal capacity is fungible, so not a problem. But supplier capacity needs enhancement. In 3-4 months, we aspire to increase supplies by 50%. It may take slightly longer due to discussions with suppliers.
