Tata working on a compact SUV

The Tata Motors is working on a mini SUV which falls in the sub four meter category. The shorter version can benefit considerable tax benefits which can be passed on to the customers. The vehicle will be based on the Indica Vista’s X1 platform. The new model will compete with the Mahindra Quanto, Premier Rio and Ford EcoSport. The Mahindra Quanto was a success and has reaped good for the Mahindra.

There were also talks about Tata Motors developing a mini Aria to rival the Maruti Suzuki Ertiga. If those rumors are also true, then we could see three new contenders from Tata Motors in the mini UV segment making it a complete portfolio.

Tatas will invest more than Rs 75 billion into the passenger vehicle business over the next five years. Approximately 30% of that will be for the existing facilities or upgrading hardware and the rest will be for the new products.

Tata desperately needs a new hit model to arrest its sliding sales and eroding market share. A slew of new variants to combat competition from global brands will see it bin its inflexible past strategy of one car per market segment. The success of the new drive will hinge on how soon Tata can bring fresh designs and ideas to market. That could take time.