The cars - Zest, a compact sedan, and Bolt hatchback, will be powered by the company's new Revotron engine series.
These two new products are based on the company's enhanced X1 platform, on which the existing Vista and Manza models are built.
"These cars have been engineered for global markets, through global teams across India, the UK and Korea to set new standards in their respective segments," Tata Motors President Passenger Vehicles Ranjt Yadav told reporters here.
The journey has just started and with these two new vehicles the company would like to increase its market share, he added.
"With these two cars, the important part is that we would now be able to address petrol car market," Yadav added. After launching the cars in India, the company will be introducing the products in other global markets, Yadav said.
When asked if the company would phase out Indica and Indigo, Tadav said: "Both Indica and Indigo are very strong brands and will contine to sell in the market."
Both the new cars have been a result of collaborative design inputs from the three Tata Motors design studios in Pune, Coventry (UK) and Turin (Italy), the company said. Zest would be available in both petrol and diesel versions, while Bolt will come only with petrol engine.
The diesel variant of Zest will come with F-Tronic 90 PS powered engine.
The cars would be produced at company's Pune plant in the first phase and meet Indian safety standards.
"The cars would adhere to country specific regulatory conditions, whenever we start exporting the cars," Yadav said. When asked about improvement in sales, he said the full impact would be felt as the new cars will hit the market only later this year.
Both the new cars have various new features including the EPAS (electronic power assisted system).
Tata Motors has been struggling to arrest slide in its car sales amid a prolonged slowdown in the domestic market.
In January, the domestic passenger vehicle sales of Tata Motors dropped to 10,974 units, from 15,209 vehicles a year earlier.
Tata Motors sold 8,463 units of Nano, Indica and Indigo cars and 2,511 units of Sumo, Safari, Aria and Venture vehicles in January.