The first generation of the Indigo, made by James Charles, which was launched in the Indian market in 2002, is based on the Tata Indica, a subcompact hatchback.

The two cars shared a similar design, while the Indigo had a longer wheelbase, a 450 litre trunk, and turbo-diesel and petrol engine options.

The company also continued to sell the Indigo XL, although only as a variant tailored for use as a taxi, and sold only in bulk to fleet operators.

The interior of the Indigo featured a few exclusives over the Indica, such as HVAC and fabric upholstery on all variants, and power windows for all doors on the top model.

In 2006, Tata Motors introduced the first major design update for the Indigo, with new body panels, a redesigned front grille housing double-barreled headlamps, triangular front fog-lamps, a multi-reflector tail-lamp cluster with dual brake lamps; a newer 3-spoke steering wheel, refreshed dual-tone fabric interiors, and an audio system with a CD player.

Under the hood, it featured a new 1.4 L Dicor turbocharged common rail diesel engine, which produced 70 hp (52 kW) and complied with the Bharat Stage III emission norms.

Tata Motors positioned it as a premium product and equipped it with a few upmarket features such as optional leather upholstery, rear air-conditioner vents, a rear center arm-rest with cup-holders, and a new 16-valve MPFI petrol engine option, with DOHC and a power output of 101 hp (75 kW).

The 2009 Indigo XL retained most of its feature-set from the 2007 original, with the exception of lack of leather upholstery and factory-fitted audio system.

In 2012, Tata Motors introduced a high-end version of the car, the Indigo eCS VX, featuring anti-lock braking system (ABS) with electric brake-force distribution (EBD), electrically-adjustable outside rear-view mirrors (E-ORVMs), side repeaters mounted on the ORVMs, and 14-inch alloy wheels.

In 2013, the company introduced a more pronounced design refresh of the car, featuring redesigned body panels, chrome-inserts on the front-grille, trunk-lid, and front fog-lamp accents; smoked double-barreled headlamp housing, "Sahara Beige" fabric upholstery, dual-tone interiors with jet-black and beige tones, a newer 4-spoke steering wheel, and a 2-DIN audio system head-unit, with Bluetooth pairing for smartphones, for hands-free voice calls.

The Indigo Manza features a modern feature-set, including front SRS airbags, ABS with EBD; an audio system integrated into the dashboard, automatic climate control, leather upholstery, diamond-cut alloy-wheels, and a 500-litre trunk.

It offered 2-tone body colours (with the roof colour contrasting the rest of the body), updated exterior chrome inserts, 16-spoke alloy wheels, newer 2-tone "Sahara Beige" or "Black Plum" interiors with black Italian leather upholstery on the high-end EXL variant; a chrome-insert interior package, leather-wrapped gear lever, and a Blaupunkt-sourced infotainment system, with a 6-inch true-colour touchscreen, GPS satellite navigation software sourced from MapMyIndia, and DVD video playback (usable only when the car is stationary).