Tata Motors' Punch beats Maruti Suzuki WagonR as India's top-selling car

Punch's success highlights a rising consumer preference for alternative fuel options, according to experts

Tata Motors' Punch is India's top car after selling more than 1,26,000 units between January and July to overtake the long-reigning Maruti Suzuki WagonR, 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 faced a setback in July, slipping to the fourth position as the Hyundai Creta took the lead, according to data from auto market research firm Jato Dynamics.

Punch's success marks a growing consumer inclination towards alternative fuel options, which now make up nearly half of the top five car sales. Notably, electric and CNG (compressed natural gas) variants account for 47 per cent of Punch's total sales. Similarly, CNG has become a crucial factor in the sales of Maruti Suzuki's WagonR (45 per cent), Brezza (27 per cent), and Ertiga (58 per cent).

 

Auto industry experts credit 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, expanding from all-petrol in 2023 to include electric and CNG variants, caters to diverse consumer preferences and addresses concerns about rising fuel costs," Ravi Bhatia, president of Jato Dynamics was quoted as saying by The Economic Times.

Car dealers also acknowledge the impact of the Punch's fuel mix on its sales growth. " Punch's sales surged 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 either offer CNG or diesel as the only alternative to petrol.

Vivek Srivatsa, chief commercial officer of Tata Passenger Electric Mobility, highlighted the Punch's remarkable achievement: "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, launched in July 2023, has seen its 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 about diversifying fuel options to meet different consumer needs and regulatory requirements, while also focusing on the micro SUV segment to attract price-sensitive customers who aspire to own an SUV," added Bhatia.