“The challenge was in doing justice to the OG Sierra, keeping its spirit intact, but also making a car which is of mass appeal” says Shailesh Chandra, MD & CEO of Tata Motors

The Tata Sierra holds a unique place in India’s automotive history, having been the country’s first taste of a lifestyle SUV back in the 1990s. With the official unveiling of its modern successor, the pressure was on Tata Motors to honour its legacy while reimagining it for a new generation. We sat down with Shailesh Chandra, Managing Director & CEO - TMPVL & TPEM, who led the project, and Ed Sirish Chandran to discuss the immense challenges of developing the new Sierra, the strategic powertrain decisions, and how this legend will fit into Tata Motors’ expanding premium SUV portfolio.

Sirish: Shailesh, big day. The Sierra is finally getting unveiled. From the concept that we saw, obviously there must have been a lot of changes in the final product. What were the key challenges?

Shailesh: Yes, well, the first key challenge was, how do you do justice to the worthy Sierra? Because it was the first car conceptualised in the 1990s by Mr. Tata. At that time, it was the first time that India saw a lifestyle SUV, and for the first time, there were many new features: HVAC, power steering, power windows and all. So, spirit-wise and silhouette-wise, how do we keep it the same? So, that was the first challenge. It has to be relevant for the modern times, and it has to be reimagined for a whole new generation.

So, that was the challenge: in terms of doing justice to the OG Sierra, keeping its spirit intact, but also making a car which is of mass appeal, especially to the new generation also. We started the concept in 2020 onwards, we started showcasing it, and then we felt that there is a trend of SUVs moving in a certain direction. You need to keep the wheelbase to a certain extent to give more space inside. So (there were) a lot of feasibility level challenges that we faced. We then kept on iterating and coming to the sweet spot of where we felt that this is a car which can give you a footprint of a mid-SUV, but can make you get the indulgence of a high(-end) SUV. That was conceptually what we said: that this is what we need to strike as the sweet spot, so that we enter into and create a space which you can say as a premium mid-SUV segment.

Why will it be premium? Because, first, it takes forward a legend and gives the resemblance in the silhouette that you give. So, wrap-around glass or an upright, boxy style of that car – you are able to transfer that genes and DNA to this car. But from an interior perspective, people get the intelligence of a high(-end) SUV because there are many people who can buy an expensive car, but there is a limitation of footprint because, say, their parking space doesn't allow or the congested city – they don't want to. So, therefore, we faced multiple engineering challenges. We went through three or four iterations of design also. We had to also get the right set of powertrain engines. So, for the first time, we are coming with the 1.5-litre, both GDI as well as NA engine, and it had to be refined properly. We had to ensure that the refinement level is at the benchmark levels. There should be no, what to say, half-hearted attempt in the whole development process. So, we took Narayan Karthikeyan’s help also, who critiqued at every stage of the development. So, a lot has gone behind this product, and also from a manufacturing perspective, you have to put a completely new engine plant, and he said this has to be the best engine plant also. So, when you visit the factory, you will see that it's a very state-of-the-art, very automated plant. So, yes, I think we can write a book on how we went through the development process of Sierra. A lot has gone behind it.

Sirish: When you showed the Sierra concept first, it was an EV. What's with the powertrain strategy? Now you're not launching it with an EV? Why is that?

Shailesh: See, the idea was always that we will launch in multiple powertrains. Why limit such a strong brand to only one powertrain and devoid a lot of fan followers of Sierra who would like to also have an ICE version? That was always in the thought. It was, in the Auto Expo, I remember that for the first time we had shown it in the EV avatar. But when I would have shown it in the ICE avatar, you would have said, "Why not in (an) EV avatar?" So, at that time we thought that EV is also a big trend and we should imagine Sierra also in EV, and that's why we had shown that. And EV is also going to come next financial year, in the first half of the next financial year.

Sirish: How is the EV business? Is there a slowdown in the EV offtake? Is there a speed bump in the adoption of EVs?

Shailesh: No, actually, there was a problem in the last financial year where it had kind of stagnated because there was a lot of negativity globally around EVs. There were U-turns on the plans of multiple global manufacturers. In India, there were a lot of debates around hybrid, electric, and all, and that created a lot of negativity. I think multiple launches have happened in the last one year and all that negative commentary has gone away. That has helped in expanding the EV market drastically. I mean, the EV market in this financial year would be growing upwards of 100 per cent, and we are also growing 60-65 per cent. So, I think the EV industry is doing really well, and I must give credit to the high(-end) SUVs, the EVs, where it has overcome a lot of barriers. It has given price parity in that segment, it has given 500 kilometre range, it is giving a lifetime warranty, the charging time has come down. With this kind of a comfort, people are feeling that this is now with no barriers, so why should one not go for it? And I just give the example of the Harrier EV which gets more bookings per day as compared to my ICE counterparts. So, it just shows this is the tipping point. These are the four factors. If you are able to overcome even the lower segment, that’s the challenge part, then that will be a big tipping point for the EV industry, and I am very optimistic that that should happen.

Sirish: Where does the Sierra sit vis-à-vis the Safari now in Tata Motors' portfolio? The Safari is also a brand with a lot of legacy, similarly to the Sierra. Where does it sit?

Shailesh: So, as I said that, technically footprint-wise, geometry-wise, this is a mid-SUV. We want to give the indulgence of a high(-end) SUV. So, that's broadly a single-line positioning of this product. So, that's why we call this a premium mid-SUV. So, definitely Harrier sits above this segment, and we believe that the customers are very distinct. Why I say that: you will globally see that there are two kinds of design which are working in the SUVs. One is a traditional boxy design, the other is a dynamic design, right? And you have a preference for both these kinds of choices. Harrier sits in the dynamic side, so styling-wise, it is different. Sierra, on one side, is an iconic brand. There is a lot of resemblance of the OG Sierra which creates that emotion, and also the boxy, upright style is a very different preference. Second, the Harrier customer is looking for performance which is more pronounced. Third, there are also people who have already used mid-SUVs, compact SUVs, and they want to now get that sense of an upgrade by buying something more big. This is a Harrier customer.

Sierra customer: many of them might be first-time buyers. These are genuine Gen Y, Gen Z people who want something which is different because they want to be seen, differentiated. They want cars to express themselves, you know, their personality. And Sierra, if you put all the mid-size SUVs, which car would you pick as being different? Sierra. Sierra will be seen as different, so that distinctness comes. It has the iconic identity also, but this is a very tech-driven car also. For the first time in an ICE car, you are getting 5G connectivity, you are getting this triple screen, you are getting Level 2 plus ADAS, you’re getting Dolby Atmos, and so on. So, therefore, it is appealing to Gen Y, Gen Z also. And it is a car which is with an optimised footprint but giving you spaciousness, premiumness of a higher segment car. So, I think there will still be some overlap you can't avoid because at the same price point, a customer is looking at cars which are in the adjacent space, but broadly the customer segments are distinct.

Sirish: Buyers from my generation have very fond memories of the Sierra because it was the vehicle that we aspired to own, our parents aspired to own.

Shailesh: You can put me also in that category.

Sirish: Yes… But the younger generation, they don't have the past baggage or memories. How do you appeal to them?

Shailesh: That was the idea while we were conceptualising, and that is also going back to the first question that how I keep this more relevant for Gen Y, Gen Z because in India, 65% of the customers are less than 35 years who might not have seen the old Sierra at all. They would have no connection with that. So, we only want to take the resemblance part, but the car, from a value proposition perspective of how it has been conceptualised, it has all the elements which appeal to a whole new generation. But they also know that there was a Sierra which was seen as different, and it's a timeless cool, it’s a timeless design. It's timeless cool. They find it – it’s cool, right? So, they will like it. While it will definitely connect with our generation, Generation X, and I've already got many mails from some of them just to thank us that you brought this back. "This was our dream car. We thought we'll never be able to buy it in our lives, but it has come. I've already booked it." So, that generation definitely has a direct connection with them, but this is very appealing. It has been conceptualised in a manner which appeals to Gen Y and Gen Z also.

Sirish: Without discussing exact numbers, what will dictate your pricing strategy?

Shailesh: One – we don't want to keep it very vague in terms of where it is positioned, so we are saying it is a mid-SUV because technically the size of the car is that. But since it is more spacious, it is more premium, we are giving all the features which are a segment above and two levels above also, we want to position it as a premium mid-SUV, but we don't want to go far away from the pricing of a mid-SUV also, although keeping some level of premium. So, I am aggressively pricing it but giving more for less. So, that is where we want Sierra to be a distinct product in a segment which is becoming too 'me too', very mediocre. And therefore, if somebody wants to escape mediocrity, this is the product.

Sirish: That is a nice term, "somebody wants to escape mediocrity."

Shailesh: Yes.

Sirish: What kind of volume aspiration do you have for the Sierra?

Shailesh: We have a production plan, but Sirish, I can't tell you the numbers. But just to give you some level of hint of the aspiration that we have: today, we are at about 16-17 per cent market share in SUVs. With Sierra, I think, you know, we should aspire for going upwards of a 20-25 per cent kind of a bracket, that kind of market.

Sirish: And now are you going to be focusing on exports? The OG Sierra was exported – one of the first vehicles that Telco back then...

Shailesh: Absolutely. This is definitely a candidate for export. We have just opened South Africa, as you would know, with four products: Punch, Tiago, Harrier, and Curvv. Next year, maybe quarter two, we would be, you know, going with more, two to three more products. Sierra can be one of the candidates, but first, let it stabilise. More importantly, ramp up the volumes on the production side before we open it up in the export market.

Sirish: How are you going to focus on quality?

Shailesh: See, quality has been the key focus throughout the development. I talked about the engine. So, there is a development quality and there's a production quality, right? We have taken utmost care of that. Also, on the development side, one big quality area is the software. And we, and many other auto companies globally, are going through the learning curve of understanding how software maturity needs to be ensured and assured before it goes to the launch. Through our learnings, we created a centralised software integration team for the first time in Sierra. We also brought in the suppliers to get co-located because they are the people also who are developing softwares, and we went for a synchronous release of all softwares together. Because many a times if you integrate software at different points in time, you get into integration issues and all. I think with these steps, I think we have been able to overcome a lot of maturity issues on the software, and therefore, keeping fingers crossed that everything should be fine.

On the manufacturing side, both on the supplier quality as well as manufacturing quality, there are no shortcuts. Very strict gates have been put for quality. Let us compromise on production quantity, but not before the quality maturity of the initial production has been ensured. So, we have taken all the right steps, tick marks to all what we need to do, right? And now, you know, let's hope for the best.

Sirish: Last question: if you had to describe the Sierra in one sentence to somebody who owned the Sierra in the 90s, or whose father, mother owned the Sierra in the 90s and was driven in the back of a Sierra, how would you describe it?

Shailesh: The new Sierra makes you remember your old memories, right? It will be a reminiscence of what you had experienced then. And you will, when you sit in the current Sierra, you will see that, "God, they did justice to this," because it is very modern, it is as spacious. It gives you that living-room experience which the old Sierra, when you sat in the back, gave you. So, from an experience perspective, it evokes the same emotions but gives you a very modern feeling. That's what I would say.

Sirish: So, looking forward to seeing the unveil and, most importantly, driving it next week.

Shailesh: Sure, thank you.