Launched in April 2016, Tata Motors’ stylish hatchback that’s big on value has clocked a new milestone in the domestic market. The launch of the CNG variant in January 2022 and the Tiago EV in September 2023 have helped drive demand for the Tiago in the past few years albeit sales are down in the first seven months of FY2025.
24 Nov 2024 | 8162 Views | By Ajit Dalvi
The Tata Tiago hatchback has clocked cumulative wholesales of 600,000 units in the Indian passenger vehicle market. The Tiago’s latest sales milestones comes eight-and-a-half years after it was launched on April 6, 2016.
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The Tata Tiago hatchback has clocked cumulative wholesales of 600,000 units in the Indian passenger vehicle market. The Tiago’s latest sales milestones comes eight-and-a-half years after it was launched on April 6, 2016.
As per SIAM wholesales data for the Tiago, a total of 596,661 units have been sold since the car’s launch till end-October 2024, which leaves it just 3,339 units shy of the 600,000 units milestone. Considering the Tiago has averaged monthly sales of 4,546 units in the August-October 2024 period or around 151 units per day, the gap of 3,339 units to the cumulative 600,000 mark would have been bridged and crossed in the first three weeks of November 2024.
The Tiago was part of Tata Motors’ strategic move to revamp its brand image from a commercial vehicle manufacturer to a serious competitor in the passenger car market. Aiming to be a game-changer for the company and a disruptor in the hatchback market because of its aggressive pricing at launch (Rs 339,000 ex-showroom Mumbai), design and lower cost of ownership, the Tiago at the time was targeted at the likes of the Maruti Celerio and Hyundai i10, both well-established models and a replacement for the ageing Indica eV2.
For Tata Motors, the Tiago marked the debut of its two new in-house-developed engines – a 1.2-litre, three-cylinder, naturally aspirated Revotron petrol that develops 86hp and 113 Nm of torque (and continues to this day in the Tiago) and the 1.05-litre three-cylinder Revotorq diesel that developed 70hp and 139 Nm (Tiago diesel has been discontinued). Since then, the Tiago has gone on to get CNG (in January 2022) as well as electric (in September 2022) powerplants, both of which have helped increase this Tata hatchback’s sales.
BIGGEST CONTRIBUTOR TO TATA MOTORS’ PASSENGER CAR SALES IN PAST DECADE
The Tiago’s best fiscal year sales came in FY2019, when it sold 92,369 units, accounting for a commanding 71% of Tata Motors passenger car sales of 131,387 units and 40% of its total passenger vehicle (cars and SUVs) sales of 231,512 units. However, sales numbers in the next three fiscals hovered between the 49,000 and 58,000-units mark as a result of pandemic in 2020 and the Covid-induced lack of market demand. Demand picked up in FY2023 with Tiago wholesales rising 33% YoY to 77,399 units and further rising to 85,478 units in FY2024 (up 10% YoY).
Of Tata Motors three-model passenger car portfolio comprising the Tiago, Tigor sedan and the premium Altroz hatchback, the Tiago’s has been the strongest contribution. A quick dive into decadal data reveals just how strong the Tiago’s share of the company’s passenger car sales has been (see SIAM data table above). From a share of 42% in FY2017, it rose to 71% in FY2019 and is currently 51% in the April-October 2024 period of the current fiscal year (FY2025).
The 600,000 milestone for the Tiago would have come sooner but for the fact that it is part of the hatchback segment which has witnessed a perceptible decline in customer demand over the past few years. In fact, in the current fiscal’s first seven months, estimated wholesales of 37,202 units are down 33% YoY (April-October 2023: 55,288 units estimated).
Nevertheless, the Tiago has clocked the last two rounds of 100,000 sales in 15 and 16 months respectively (see the sales timeline above). The Tiago, which is manufactured at Tata Motors’ Sanand plant, drove past the 500,000 milestone in July 2023. According to the company’s press release at the time (July 6, 2023), the Tiago has an average buyer age of 35 years. While 60% of the sales come from urban India, the remaining 40% is from the rural markets. Interestingly, female buyers account for around 10% of its sales.
In an effort to rev up sales of the Tiago, in February 2024, Tata Motors launched the AMT-equipped iCNG variant (along with the Tigor sedan), marking an Indian industry-first for being the first automatic CNG passenger vehicle. In the same month, given the increasing competition amongst electric hatchbacks, the company slashed the price of the Tiago EV by up to Rs 70,000.
The Tiago is currently available in 30 variants, spanning IC engine and electric. There are 23 Tiago ICE variants comprising 13 petrol and 10 CNG, with pricing starting at Rs 633,000 for the base XE petrol variants and going up to Rs 993,000 for the top-end XZ+CNG AMT variant. While the petrol-engined Tiago delivers 20.09 kilometres per litre, the petrol-CNG engine’s mileage is 26.49 kpl.
In its quick commentary on the Tiago petrol and CNG variants, Autocar India states: “The Tiago looks chic and is rather nice on the inside as well. The cabin is well laid-out and also looks relatively upmarket, with elements like textured plastics on the dash and a knitted roof lining doing much to improve the ambience. Drivers will like the view out, while passengers at the rear will be happy with the space and comfort on offer. The 86hp petrol engine can get thrummy at times, but performance is more than adequate. Unless you’re going full throttle, the 73hp of power in CNG mode will not leave you wanting either. A light steering makes the Tiago easy to steer and, while set to the firmer side, the suspension delivers good ride quality on the whole.”
What has given the Tiago a fresh charge is the rollout of the electric avatar in September 2022. Available in seven variants and priced from Rs 943,000 (on-road Delhi) through to Rs 12.99 lakh, the Tiago EV is the third Tata Motors EV after the Nexon EV and the Tigor EV. It comes with two battery pack options – the smaller 19.2kWh unit delivering an MIDC range of 250km and the larger 24kWh unit delivering an MIDC range of 315km.
Like the Nexon and Tigor EVs, it is powered by Tata’s ‘Ziptron’ high-voltage architecture and uses a permanent magnet synchronous electric motor that develops 61hp with the smaller battery pack and 74hp with the larger unit. The Tiago EV supports fast charging, with lower variants capable of 3.3kW AC charging, and higher ones 7.2kW. Via a 50kW DC fast charger, it can top either of its batteries from 10-80% in just 57 minutes.
TIAGO CURRENTLY RANKED NO. 3 IN MIDSIZE HATCHBACK SEGMENT
In FY2024, the Tata Tiago, with 85,478 units, was ranked third in the midsize hatchback category after the Maruti Wagon R (200,177 units) and the Maruti Swift (195,321 units). In FY2025, in the April-October 2024 period, with an estimated 37,202 units (down 33% YoY), the Tiago has achieved 43% of its FY2024 total and is currently ranked third behind the Maruti Wagon R (106,034 units, down 13% YoY) and the Swift (103,387 units, down 16.55% YoY) and is just 184 units ahead of the Hyundai Grand i10 Nios (37,018 units). The Celerio (21,450 units) is ranked fifth in this segment.
The Tiago is part of the midsize hatchback segment which, in April-October 2024, has seen total estimated dispatches of 655,431 units, down 17% YoY (April-October 2023: 790,946 units). Will demand recover for this Tata hatchback in the coming months? While November 2024 should see similar number as in October, December 2024 will be a lean month given that new car buyers tend to delay purchase decisions to the new year. Let’s wait for CY2025 to open.
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