Despite slipping from number one to the tenth spot in sales in 2025, Tata Motors believes volumes of its micro SUV will climb to new peaks with two limiting factors now being addressed.
13 Jan 2026 | 379 Views | By Sergius Barreto and Darshan Nakhwa
Tata Motors Passenger Vehicles Ltd expects sales of its micro-SUV Punch to hit a new peak with the launch of the facelift, as the company believes it has addressed the key factors that weighed on the model’s performance in 2025, managing director and chief executive officer Shailesh Chandra said.
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Tata Motors Passenger Vehicles Ltd expects sales of its micro-SUV Punch to hit a new peak with the launch of the facelift, as the company believes it has addressed the key factors that weighed on the model’s performance in 2025, managing director and chief executive officer Shailesh Chandra said.
Since its debut in 2021, the Punch has been a cornerstone of Tata Motors’ passenger vehicle portfolio. In calendar year 2024, it emerged as India’s highest-selling car with volumes of slightly over 2 lakh units–becoming the first non-Maruti model in over four decades to top the sales chart. In 2025, however, the model slipped to the 10th position amid broader market headwinds.
Chandra said the decline does not reflect any structural weakness in the product. “I don’t see this as a drop, mainly because of two large factors,” he told Autocar India at the launch of the updated Punch. “One, there was significant pressure on the entry segment, and Punch was also affected,” he said, noting that a slowing economy dampened demand for entry-level vehicles. “The second factor was that for almost six months last year there was a rumour of the facelift coming,” he added, which led many buyers to defer purchases.
According to Chandra, these headwinds have since eased. “As you saw with the GST rate cut, these factors were significantly offset,” he said. “Despite all this, we still retailed about 1,85,000 units last year. So with the new Punch, I am very confident sales will start hitting the next peak.”
Turbo Petrol and CNG AMT to Drive Sales
Beyond the facelift and new technology, Tata Motors expects the expanded powertrain line-up to be a key driver of incremental sales for the Punch. The updated model now adds a turbo-petrol option, while the naturally aspirated CNG variant is available with an AMT for the first time, broadening its appeal across buyer profiles.
“The naturally aspirated Punch will be the primary seller but the turbo Punch will add to our customer base bringing in those customers who want a small SUV and are looking for a sprightlier car,” said Chandra.
A similar opportunity exists in CNG, a powertrain that has emerged as a meaningful growth lever for Tata Motors. While demand has traditionally skewed toward lower-spec variants, Chandra expects higher trims and automatic options to contribute a “sizeable portion” of future CNG volumes, adding to incremental growth rather than merely replacing existing sales.
The confidence is backed by numbers. In 2025, CNG models accounted for 28% of Tata Motors’ overall passenger vehicle sales, while in the case of the Punch, CNG variants made up a significantly higher 35% of total volumes, underscoring the fuel’s importance to the nameplate.
Safety Focus, Interior Upgrade
On the safety front, the facelift raises the bar with six airbags as standard, ESP, iTPMS, hill-hold and hill-descent control, SOS calling (E-Call/B-Call), and a 360-degree HD surround view system with blind-spot monitoring, all under Tata’s Safety Dome architecture.
Inside, the Punch facelift marks a clear step up in digital and connected features. It now offers a 10.25-inch Ultra View HD touchscreen infotainment system and a 7-inch fully digital instrument cluster. Connectivity has been enhanced with a voice-assisted electric sunroof, native voice recognition, iRA 2.0 connected-car technology with over 50 features, wireless smartphone charger and other features.
In India, the micro-SUV segment that the Tata Punch helped define has become one of the most dynamic sub-segments of the passenger vehicle market. Its immediate rivals include the Hyundai Exter, Maruti Suzuki Fronx, Nissan Magnite, Renault Kiger, Citroën C3, and others. The segment has generally been resilient even as broader passenger vehicle growth moderated: strong urban demand, rising preference for SUV-themed packages, and competitive pricing have sustained volumes.