Sierra may not have been able to match the sales of its closest competitor, the all-new Kia Seltos, so far, but experts said Tata Motors expects to close the gap once the Sierra EV, which launches on June 30, gives the brand incremental sales numbers (the Seltos isn’t available as an EV model yet), and Tata clears its backlog around the festive season.
Last five months’ sales data shows that Sierra’s ICE variants have lagged behind in sales of its closest competitor, the all-new Kia Seltos. Both these midsize SUV heavyweights were launched around the same time, but data from the Society of Indian Automobile Manufacturers (SIAM) shows that the Seltos (53,151 units) has sold almost 1.5 times the Sierra (37,319 units).
Industry experts, however, argued that it isn’t about slowing demand for the Sierra, but more about Tata facing production constraints.
Booking Surge
When prices of the Sierra were announced in November last year, the SUV recorded a massive 70,000 bookings within 24 hours, which increased to more than 100,000 by February this year. Customer deliveries, however, were muted — 291 units in December, 7,003 in January, and 7,100 in February.
The Seltos, on the other hand, took off the day deliveries started (January 2), and it sold 10,639 units in January, 10,308 in February, and 11,041 units in March.
In the next two months, Seltos maintained its sales trajectory (10,566 units in April, and 10,597 units in May), while the Sierra cooled off at 7,316 units in April, and 6,606 units in May.
A spokesperson from Tata Motors Passenger Vehicles, however, shared that the demand for the Sierra hasn’t cooled off. “The current volume trajectory of the Sierra is primarily a function of supply-side constraints rather than demand. Since launch, we have faced limitations in the availability of certain supplier components, which have impacted our ability to fully meet demand,” he said.
“Customer response to the Sierra continues to be very robust, and we are actively working with our supplier partners to address the bottlenecks and progressively ramp up production in the near term.”
He added that the waiting period for the Sierra is up to 12 weeks, depending on the variant, colour, and location, and as supplies improve, Tata Motors expects growth in volumes, accelerated deliveries, and reduced waiting period.
Agreeing with this, Gaurav Vangaal, associate director, Light Vehicle Forecasting, S&P Global Mobility, said that when the Sierra was launched, it triggered an unprecedented surge in demand that far exceeded initial expectations.
“While a production ramp-up followed, it has lagged behind because bookings simply kept pouring in. But we expect that, by the upcoming festive season, Tata Motors will have scaled production sufficiently to substantially reduce waiting periods, driving much higher sales volumes for the Sierra in the months ahead.”
Seltos Advantage
Even as Tata clears its backlog, Kia India has leveraged its supply chain to keep its dealerships fully stocked. “Seltos has maintained consistent volume of over 10,500 units monthly, proving the strength of its long-term brand equity,” an industry analyst said.
But the strong performance of Seltos isn’t just due to consistent monthly dispatches, but also due to the trust that the brand has cultivated since 2019 when it was first launched. Commenting on the SUV’s sustained appeal, Atul Sood, senior vice-president, marketing & sales, Kia India, said that Seltos has the highest resale value among all midsize SUVs, pointing to a recent study that noted Seltos retains 79% of its value after one year, 67% after three years, and 57% after five years of ownership. “The findings affirm the enduring appeal of Seltos and reflect the confidence customers continue to place in its quality, performance, technology, and overall ownership experience,” he said.
