Tata Motors has launched an updated version of the Tata Punch at a starting price of Rs 5.59 lakh (ex-showroom). Shailesh Chandra, managing director of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, speaks to Akbar Merchant on how the company sees the Punch going forward, the outlook for the passenger vehicle industry, and Tata Motors’ own positioning across internal combustion, CNG and electric vehicles. Excerpts:
Q What were you trying to fix with the Punch when you first launched it, and how does the facelift build on that?
A The biggest compromise in small cars has traditionally been safety, and we wanted to break that with the Punch. The facelift is a continuation of that philosophy. It adds choices and relevance without changing the core proposition. For us, it’s about keeping the car contemporary while staying true to why customers bought into it in the first place.
Q How should we think about Punch sales from here?
A I won’t get into absolute numbers, but last year Punch did about 175,000 units, after peaking at over 200,000 units earlier. With the refresh and additional powertrain options, we expect to cross that earlier peak. That would mean low double-digit growth, broadly in the 10–15% range.
Shailesh on Punch
Q How large is the sub-compact SUV segment today, and where does Punch sit within it?
A The segment is roughly 40,000 units a month, or close to 500,000 units annually. Tata Motors has a share of over 35% in this space, largely driven by Tata Punch. It has wide geographic reach, from rural markets to Tier 1 cities, and appeals across age groups. We are also seeing growing traction among women buyers. Multiple powertrain options have helped broaden the base further.
Q How do you assess the passenger vehicle market going by sales trend in 2025?
A Industry growth on a wholesale basis was around 5%, while retail registrations were closer to 10%, taking the market to roughly 4.5 million units. The first half was weak, but a strong second half ensured the year ended positively. Policy actions such as GST changes, tax cuts and repo rate reductions helped support demand.
Shailesh on Tata Motor’s performance
Q How did Tata Motors perform relative to the industry in the second half?
A The first half was challenging across the board. After the policy interventions, demand improved sharply. In the third quarter of the current financial year, we ranked second in industry sales. That turnaround helped us exit the year on a much stronger footing.
Q What were the key business milestones for Tata Motors during the year?
A On the electric side, we crossed cumulative sales of 250,000 units, accounting for about two-thirds of the EV passenger vehicle space. Nexon EV crossed the 100,000 milestone. On ICE, Tiago is nearing 700,000 cumulative units, and Nexon is approaching one million units across powertrains. These are important volume pillars for us.
Q You’ve spoken about CNG as a quiet growth story. How significant is it?
A Very significant. While the overall industry grew 5–6%, CNG grew over 25%. Tata Motors’ CNG volumes grew about 32%. Our CNG penetration is now close to 28%. If you combine CNG and electric, over 40% of our portfolio today comes from lower-emission powertrains.
Q Do hybrids play a role in your transition strategy?
A We don’t see hybrids as a bridge to EVs. EVs are already viable. Hybrids are essentially an efficiency play within ICE. We remain proactive on EVs and would look at hybrids only if there is a clear segment-specific opportunity.
Q How would you sum up 2025 for Tata Motors?
A It was about sustaining momentum built over the last few years. We had multiple launches and exited the year with our fifth consecutive highest-ever calendar year sales. EV volumes were also at an all-time high, at around 81,000 units, translating into 14–15% penetration.