Tata Motors to launch XO hatchback and “Kite” compact sedan in 2015?

2014 will see Tata Motors launching an improved Vista, codenamed the Falcon4 and a new compact sedan based on the Manza, codenamed the Falcon5.

All new products will begin arriving only in 2015, with two new cars, the XO hatchback and the “Kite” compact sedan. Both products have been designed around the HORIZONEXT 2020 strategy and will represent the next wave of growth for the Indian car and utility vehicle giant.

Coming to the XO hatchback, CarToq has a range of details about this car, from the engines it will use to the production facility from which it will roll out. As the Nano factory in Sanand, Gujarat, is being utilized at abysmal levels, what the sales of the world’s least price car not picking up, the XO is likely to roll out from Sanand, to make better use of this factory.

The XO will be Tata Motors’ second tall-boy design, after the Nano. The car will be aimed at the likes of the Alto 800 and the Hyundai Eon. In that light, the XO will be a car that sits between the Nano and the Indica, as another entry-level hatchback from Tata Motors. The XO will get two engine options: an 800 cc, 3 cylinder petrol engine currently being tested on the Nano, and a turbo diesel engine, the details of which remain sketchy at the moment.

The XO hatchback could spawn a compact sedan called the “Kite”, to be positioned under the Manza CS. Notably, Maruti Suzuki is also developing a compact sedan based on the next-generation Alto/YL7. The Kite compact sedan is likely to take on the Alto/YL7 based model and could be the least priced compact sedan to be sold in India, positioned under the Indigo eCS. Expect petrol and diesel engine options for this car as well.

Tata Motors’ HORIZONEXT 2020 strategy started out with the aim of facelifting existing Tata cars, improving reliability and streamlining the sourcing of parts. The next step of this strategy entails the launching of all-new products. The 2015 Tata XO hatchback and the “Kite” compact sedan will be the first two products representing the second phase of HORIZONEXT 2020.

Another interesting rumour is that the Vista hatchback will continue to be sold alongside the Falcon4 hatchback. So, the lower end of the B+ segment hatchback space could be serviced by the Vista with the higher end of the spectrum being serviced by the Falcon4. A similar strategy could hold good in case of the Manza compact sedan as well, which could be priced and positioned above the Indigo eCS, which is very likely to have a production run of a couple of more years considering its recent facelift. We’ve got interesting details about the Falcon4 lined up for you in an exclusive scoop coming your way in the next 48 hours. Watch this space.