Tata Motors Launches New Punch SUV at ₹5.59 Lakh

Tata Motors Passenger Vehicles Ltd. launched the new Tata Punch on January 13, 2026, in Mumbai, introducing a turbocharged petrol engine and twin-cylinder iCNG technology with AMT gearbox at an introductory starting price of ₹5.59 lakh (ex-showroom, New Delhi).

The updated subcompact SUV, trusted by approximately 700,000 customers since its October 2021 debut, adds two advanced powertrain options while maintaining its 5-star Bharat NCAP safety rating.

The new Punch offers a 1.2L turbocharged iTurbo Revotron engine delivering what the company describes as a best-in-class power-to-weight ratio. It becomes the first SUV in its segment to feature twin-cylinder iCNG technology paired with an AMT gearbox, providing both efficiency and convenience in a single package.

"The Punch has always been a reflection of India's evolving ambitions, democratizing the SUV experience with a feature-rich package that earned it a place among India's best-selling SUVs," said Shailesh Chandra, MD and CEO of Tata Motors Passenger Vehicles Ltd.

The new Punch is available across eight variant levels—Smart, Pure, Pure+, Pure+ S, Adventure, Adventure S, Accomplished, and Accomplished+ S—with pricing ranging from ₹5.59 lakh to ₹10.54 lakh. Powertrain options include Revotron petrol with manual and AMT transmissions, iCNG with manual and AMT transmissions, and iTurbo petrol with manual transmission.

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The vehicle features a 26.03 cm HD infotainment system, 360-degree HD surround view system, auto-dimming rearview mirror, and a 65-watt front Type-C USB charger. Safety features include six airbags as standard, electronic stability program, hill hold control, hill descent control, and rain-sensing wipers. The SUV is built on the Alfa-Arc architecture with ultra-high-strength steel construction.

The new Punch incorporates design updates including a 3D front grille, LED headlamps and connected tail lamps, executive lounge seats with extended thigh support, and a flat rear floor design. The iCNG technology uses twin-cylinder innovation that preserves boot space while retaining standard features.

The vehicle has received over 95 active and passive safety features and maintains the 5-star Bharat NCAP safety rating achieved by the previous generation.

A Remarkable Run

When Tata Motors launched the Punch in October 2021 at a starting price of Rs 5.49 lakh, it identified a "white space" in the Indian passenger vehicle market—an affordable sub-compact SUV that could challenge premium hatchbacks while offering commanding SUV DNA. The gambit paid off spectacularly.

The Punch rewrote sales record books with unprecedented pace. It became the first SUV in India to cross 100,000 wholesales in just 10 months, hit the 150,000 mark in 15 months, crossed 200,000 in 20 months, and touched 400,000 units in a scant 32 months. By January 2025, Tata celebrated the half-million milestone, and within the same year, the micro-SUV crossed 600,000 production units—becoming the fastest SUV to achieve this feat in under four years.

The crowning achievement came in calendar year 2024, when the Punch dethroned Maruti Suzuki from the top of India's passenger vehicle sales charts—ending four decades of the Japanese-Indian carmaker's dominance. With over 202,000 units sold in CY2024, the Punch became India's best-selling car, consistently outpacing the Wagon R, Ertiga, and even its sibling Nexon.

However, 2025 has told a different story. The first half of the year saw the Punch slide from the pole position to 10th place in monthly sales rankings, with a 23% year-on-year decline. Monthly volumes, which averaged over 16,000 units in FY2025's first half, dropped significantly by mid-2025.

Several factors contributed to this deceleration. The micro-SUV segment has become fiercely competitive with the entry of the Skoda Kylaq and Kia Syros, both offering fresh styling and features. Concurrently, consumer preferences have shifted toward larger SUVs, with models like the Nexon and Creta gaining ground. A broader market trend away from smaller vehicles has also impacted the segment.

Perhaps most significantly, buyer anticipation for the facelift has dampened demand for the outgoing model. Having remained largely unchanged since launch, the Punch faced criticism for stagnating while competitors introduced updates and new features.