The second-generation Safari, also known as the Tata Merlin, was unveiled at the Auto Expo 2012 in New Delhi, and costs upwards of Rs 9.95 lakh (ex-showroom, Delhi).
The Storme is powered by a 2.2-litre DiCOR engine that produces 140 bhp of power at 4000 rpm and 320 Nm of maximum torque at 1700-2700 rpm.
The Storme appears to be inspired by the Range Rover, considering its rectangular body and headlights, and will look to give fresh competition to Mahindra and Mahindra, whose Scorpio and XUV 500 have been market leaders in their price segments.
Other facelifts include a new bumper and a new grille. The old rectangular headlamps have been done away with.
One stark difference is that the spare wheel will no longer be hinged at the back, and has been moved under the boot.
Tata Motors is looking to rationalize its product range and overhaul its image, Karl Slym, the head of its domestic business, said on Tuesday.
Mr. Slym also said the company would look to launch a next-generation version of its Nano for the US market in about three years.
Tata Motors, India's biggest car maker by revenue, is increasingly dependent on its UK premium car subsidiary Jaguar Land Rover for growth to offset weakness in India. Net profit at the domestic business has fallen for three straight quarters, and the company has not unveiled a new mass-market car for two years.
"We will continue to look for segments where there is growth, and there's a likely pruning that will happen over time as we do that with our portfolio," Slym said.
Tata's Indian car sales fell by 9.9 per cent in the three months to June, its fiscal first quarter, the company said, despite a 5.2 per cent increase in the size of the overall Indian market.
Tata, which is also India's biggest truck and bus maker, faces strong competition from global firms such as Ford and as they build up local operations.
The Nano, hailed on its launch as the world's cheapest car, has not met early expectations. Tata has sold just 215,000 Nanos since its debut in July 2009, far fewer than the 20,000 a month initially targeted and has failed to convince millions of Indians that they should switch from their motorbikes to the car.
"We want it to be global and obviously the US is a market that we would like to be in," Slym said.
A pioneer in India's SUV market, Tata now trails local rival Mahindra & Mahindra, which sold around four times as many SUVs as Tata in the last fiscal year.