In June 2025, Tata Motors announced its plan to introduce seven new nameplates by 2030 including the Sierra and the Avinya. While the Tata Sierra and Sierra EV have already gone on sale, the premium Tata Avinya EV range will debut in early 2027. According to reports, the upcoming range will be joined by an all-new compact SUV, codenamed Tata Scarlet, which is expected to be heavily inspired by the Sierra.
While the official launch timeline and product details are still under the wraps, the new Tata compact SUV is expected to arrive during the second half of 2027 around Diwali festive season. The upcoming model will measure sub-4 metre in length, and feature a rugged styling with boxy and upright stance. Several of its design elements are likely to be derived from the Sierra.

Multiple Powertrains?
Details of the Tata Scarlet (mini Tata Sierra) are scanty at the moment. However, reports suggest that Tata might use the Nexon’s 1.2L turbo petrol engine producing 120bhp, the Curvv’s 1.2L direct-injection turbo petrol or the new 1.5L naturally aspirated petrol engine for the compact SUV. It could also be offered with diesel and electric powertrain options. The Tata Scarlet EV, if approved for production, could get a dual-motor setup with an AWD configuration.
Pricing & Positioning
When it comes to pricing and positioning, the new Tata compact SUV is likely to sit betwen the Punch and Nexon, which are currently priced between Rs 5.65 lakh – Rs 10.60 lakh and Rs 7.37 lakh – 14.22 Rs lakh, respectively. However, the Scarlet is expected to attract a different set of buyers with its rugged styling and key attributes.
Speculations suggest that the mini Tata Sierra could be designed on a monocoque chassis, making it a rival to the monocoque-based SUV such as the Maruti Suzuki Jimny and Mahindra Thar. However, it’s unlikely to possess off-road capabilities similar to the Jimny and Thar. The Scarlet will be a rugged lifestyle, offering buyers an alternative to the compact crossovers and small SUVs.
