Tata Motors aims to infuse fresh energy into the hatchback segment with the launch of the updated Tiago, as it looks to revive their share in its overall passenger vehicle portfolio after the category’s contribution slipped to around 15% in recent years.

“Customers didn’t go away from hatchbacks, but hatchbacks became more functional and less aspirational,” said Tata Motors MD & CEO Shailesh Chandra in an interview ahead of the launch event about the Indian market which has seen consumers gravitating towards SUV.

The automaker intends to change that with the features-laden refreshed Tiago which has a 26.03 cm HD infotainment display with wireless connectivity, digital island cluster, dual smartphone deck with wireless charger offers.

There are several safety features too such as 360° surround view system HD camera system, blind view monitor, electronic stability program (ESP) with traction control, hill hold control, automatic headlamps, rain sensing wipers.

“We want to democratise car safety instead of trading it off for affordability,” Mr. Chandra said.

The car is available across Petrol, iCNG, and Electric powertrains and priced from ₹4.69 lakh for the ICE version and ₹6.99 lakh (full ownership) for the electric version. SUVs now account for over half of India’s passenger vehicle market, while hatchbacks which were once the industry’s mainstay have seen their share shrink to nearly 22-24% amid changing consumer preferences.

On the impact of the West Asia conflict and the resulting rise in fuel prices on consumer sentiment, the top executive said the full effect would become clearer over the next two to three months, though demand for electric vehicles had already seen a three-fold jump amid higher fuel costs.