Tata Punch Punches Past 700,000 Units Ahead of New Punch EV Launch

The Tata Punch has become the second SUV after the Nexon from Tata Motors’ current passenger vehicle portfolio to achieve domestic market wholesales of 700,000 units. From launch in October 2021 till end-January 2026, the Punch has sold 697,433 units (see data table below), with the remaining 2,567 units to hit the 700,000 milestone achieved in the first few days of February 2026. 

January 2026 with 19,257 units and 19% YoY growth (January 2025: 16,231 units) turned out to be the Punch’s best month yet. Along with the Nexon, which also hit its highest monthly sales (23,365 units), the Punch helped Tata Motors register its highest monthly passenger vehicle wholesales of 70,222 units last month. What helped energise Punch sales is the launch of the facelifted model at Rs 559,000 (ex-showroom) on January 13. The new MY2026 Punch sports the most comprehensive update for the popular Tata compact SUV including Punch EV-inspired interiors and exterior, a host of new features and also a new turbo-petrol engine for the first time. 

FY2025, with 196,567 units and 16% YoY growth, was the Tata Punch’s best fiscal to date. 

As the data table above depicts, FY2025 with 196,567 units and 16% YoY growth was the Tata Punch’s best fiscal and gave it India’s No. 1 SUV title for the first time since its launch, narrowly beating the Hyundai Creta.  The Punch was also the No. 1 SUV in CY2024 when it sold 202,031 units. However, in CY2025, it fell six ranks to No. 7 position with 173,502 units, down 14% YoY. With the rollout of the new Punch in early January and the upcoming launch of the new Punch EV on February 20, Tata Motors expects the micro-SUV to achieve big numbers once again this year and beyond.  

The Punch raised its sales bar with every 100,000 units. In August 2022, it became the first SUV in India to achieve the 100,000 wholesales milestone in just 10 months, crossed the 150,000 mark in 15 months after launch, 200,000 in 20 months, 300,000 in 28 months, and 400,000 in June 2024, just 32 months after launch. While the run from 400,000 to 500,000 wholesales took a scant six months (or 38 months after launch), the next 100,000 units to 600,000 was slower and took 10 months. As a result of the GST 2.0-fueled price reduction, the last 100,000 units have been sold in a little over six months. 

All in all, the Punch’s 700,000 sales have taken 53 months or four years and five months after launch. This is a good 30 months faster than the Tata Nexon, which took 83 months or six years and nine months to achieve the same 700,000 sales milestone in July 2024.  The Nexon though is 300,000 ahead, having crossed the million milestone recently. 

STRATEGY TO TARGET FIRST-TIME BUYERS PAYS OFF

Having identified a ‘white space’ in the Indian PV market, Tata Motors had launched the Punch with an aggressive pricing strategy starting at Rs 549,000 (ex-showroom) in October 2021. The compact SUV is currently available in 33 variants – 18 petrol, 7 CNG and eight electric. After GST 2.0 kicked in last September, Punch prices were reduced by up to Rs 85,000. The starting price is now Rs 549,000 (ex-showroom Mumba) – the same as at launch over five years ago. 

At launch, the Punch micro-SUV was positioned as a compelling and affordable model – an entry level SUV that could challenge even premium hatchbacks, tall-boy hatchbacks and also compact sedans in the value-conscious Indian passenger vehicle market. The Punch’s USP has been its compelling SUV attributes such as a high unladen ground clearance, high seating for a commanding view of the road and also a tall stance for easy ingress and egress. Clearly, the strategy seems to have paid off in spades.

The sharp focus on vehicle safety has also paid dividends in a market which was becoming aware of the need to buy high-on-safety passenger cars, SUVs and MPVs. On October 18, 2021, four days before its launch, the Tata Punch aced the Global NCAP crash test with a top five-star rating. In June 2024, the Tata Punch EV also secured a 5-star rating in the Bharat NCAP crash test. Last month, on January 20, 2026, the Punch ICE model secured a 5-star BNCAP rating. 

The Tata Punch, which generates sales from all parts of India including Tier 1-2-3 cities, remains a top choice for first-time car buyers – nearly 70% of Punch ICE (petrol and CNG) owners are first-time car buyers. Interestingly, the compact SUV has gained strong traction amongst women drivers, which is reflected in the fact that 25% of Punch EV owners are women. 

In tandem with the original Punch of MY2021, the MY2026 IC-engined Punch is also targeted at first-time buyers with a host of new features while retaining the price level. The robust sales in January 2026 (19,257 units) are proof that the new Punch packs a punch. This is just what Tata Motors hopes to achieve with the new facelifted Punch EV unveiled on February 8 and to be officially launched on February 20. 

The new Punch EV should help further accelerate Tata Motors’ sales of zero-emission cars and SUVs. The company has, in the first 10 months of FY2026, sold 74,241 e-PVs, up 39% YoY (April 2024-January 2025: 53,580 units). This is already achieved its highest-ever fiscal year sales of EVs, having gone ahead of the previous best – FY2024’s 73,833 units. With two months still to be counted in the current fiscal, expect Tata EV sales to surpass 90,000 units and likely close in on the 100,000-unit mark in FY2026. 

Tata Motors has already sold 502,866 PVs in the current fiscal, with February and March still to be counted. With the two new Punch models (ICE and EV) on sale, along with robust demand for the Nexon and a massive customer response to the recently launched Sierra, expect the company to achieve the 600,000-units milestone for the first time in FY2026. Watch this space for the latest sales updates and comprehensive industry analysis. 

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