Tata Motors’ Punch is India’s leading car after selling over 126,000 units between January and July to overtake the long-reigning Maruti Suzuki WagonR, it has been reported. The Economic Times.
This milestone marks the end of Maruti Suzuki’s dominance in the segment and highlights a shift in consumer preferences towards alternative fuel vehicles.
However, the Punch suffered a setback in July, falling to fourth position while the Hyundai Creta took the lead, according to data from automotive market research firm Jato Dynamics.
Punch’s success marks a growing consumer inclination towards alternative fuel options, which now account for nearly half of the top five car sales. Notably, electric and CNG (compressed natural gas) variants account for 47 per cent of total Punch sales. Similarly, CNG has emerged as a crucial factor in the sales of Maruti Suzuki’s WagonR (45 per cent), Brezza (27 per cent) and Ertiga (58 per cent).
Automotive industry experts attribute the Punch’s success to its innovative positioning. “As a micro SUV, the Punch offers SUV-like features at a more affordable price point. Its multi-fuel approach, which will expand from all-petrol by 2023 to electric and CNG variants, caters to diverse consumer preferences and addresses concerns over rising fuel costs,” said Ravi Bhatia, President, Jato Dynamics. The Economic Times.
Car dealers are also acknowledging the impact of the Punch’s fuel mix on their sales growth. “Punch sales have increased from just over 79,000 units in January-July 2023 to 1.26 lakh units in 2024, largely driven by its electric and CNG variants,” a Chennai-based car dealer told the newspaper.
The other four cars in the top five offer CNG or diesel as the only alternative to gasoline.
Highlighting the Punch’s remarkable achievement, Vivek Srivatsa, Business Director, Tata Passenger Electric Mobility, said, “The Punch has become the fastest vehicle to cross the 400,000 sales milestone in the SUV segment.”
The success of the Punch’s dual-fuel strategy has caught the attention of other automakers. The Hyundai Exter, due to be launched in July 2023, has seen sales soar from 7,000 units in its debut year to 52,684 units in 2024.
“For original equipment manufacturers (OEMs), the strategy now seems to be to diversify fuel options to meet different consumer needs and regulatory requirements, while also focusing on the micro SUV segment to attract price-sensitive customers aspiring to own an SUV,” Bhatia added.
First published: August 22, 2024 | 11:30 a.m. IS
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