Tata Motors Developing New Compact SUV Codenamed ‘Scarlet’

Tata Motors to launch new Sierra-inspired compact SUV with ICE and EV options

Tata Motors is preparing to expand its compact SUV lineup with an all-new model currently known by its codename, Scarlet. This upcoming vehicle is expected to feature a distinct, upright design language inspired by the classic Tata Sierra, adding a bold, boxy option to the brand’s growing SUV portfolio.

Platform and Powertrain Possibilities

The Scarlet will be built on a monocoque platform, aligning with Tata’s focus on versatility and modern architecture. This platform is designed to support both internal combustion engines (ICE) and electric powertrains, although specific engine options are yet to be confirmed. Possibilities include the 120 HP, 1.2-litre turbo-petrol engine used in the Nexon, the 125 HP, 1.2-litre direct-injection turbo-petrol engine from the upcoming Curvv, or a new naturally aspirated 1.5-litre petrol engine. A diesel variant is also a possibility, though unconfirmed at this stage.

For the electric version, Tata is reportedly considering a dual-motor setup, providing all-wheel-drive (AWD) capability. However, an AWD option for the petrol or diesel versions seems unlikely due to packaging and cost limitations.

Positioning and Market Strategy

The Scarlet is expected to be positioned in the sub-four-metre compact SUV segment, where Tata already competes with models like the Punch and Nexon. Despite potential price overlap with the Nexon and Nexon EV, Tata plans to differentiate the Scarlet to target a distinct buyer demographic.

While some industry sources view the Scarlet as a potential competitor to lifestyle SUVs like the Mahindra Thar and Maruti Jimny, its monocoque construction suggests it may prioritise urban practicality and design over hardcore off-road capabilities. Tata is likely to market the Scarlet as a lifestyle-focused alternative to conventional crossovers rather than a pure off-roader.

Future Electric Lineup Expansion

In addition to the Scarlet, Tata Motors is also working on expanding its compact electric vehicle lineup. Two new EVs, internally codenamed Kuno and Terra, are reportedly in development as part of Tata’s strategy to offer entry-level, mid-range, and premium options across each segment. More details on these models and the Scarlet are expected in the coming months as Tata continues to solidify its position in both the compact SUV and EV markets.