Tata Motors‘ compact SUV Punch, which became the highestselling car in calendar year 2024, has now dropped to the 10th position in sales rankings in the first half of 2025.
On July 17, Tata Motors announced that Punch has reached the 600,000unit production milestone in under four years. To mark the occasion, the company launched a new campaign titled ‘India ki SUV’.
Despite this milestone, the vehicle’s sales have declined notably in recent months. According to data from the Society of Indian Automobile Manufacturers (Siam), Tata Motors sold 202,031 units of Punch in 2024, averaging 16,836 units per month. In the first half of 2025, however, sales have dropped to 84,579 units, with a monthly average of 14,096.
Compared to the same period last year, this represents a 23% decline, from 110,308 units in H1 2024.
Adding to the concern, vehicles priced significantly higher, such as Hyundai’s Creta and Mahindra’s Scorpio, have recorded stronger sales figures than Punch in recent months.
Industry analysts cite multiple reasons for this slowdown. Increased competition, a lack of recent updates, and seasonal market shifts are all playing a role. New entrants in the compact SUV segment, such as Skoda’s Kylaq launched on January 27 and Kia’s Syros launched on February 1, have collectively sold more than 50,000 units this year. Even Tata Motors’ own Nexon has emerged as a competitor.
Another key factor is that Punch, launched in October 2021, has not received a significant design update. “While Punch EV has been refreshed, the internal combustion engine version remains largely unchanged,” said one analyst. “In a market where cosmetic updates and feature additions matter, Punch ICE is beginning to feel outdated. It needs a facelift to regain momentum,” he added.
Despite the drop in sales, Punch continues to attract a segment of buyers looking for a compact SUV with strong value. Analysts note that it still holds appeal due to its SUVlike design, elevated driving position, spacious interiors, and a 5star safety rating from Global NCAP. Its pricing, which ranges from Rs 610 lakh, also keeps it within reach for many buyers.
Vivek Srivatsa, chief commercial officer at Tata Passenger Electric Mobility, said that Punch is a significant product for the company and its customers. He noted that nearly 70% of Punch ICE buyers are firsttime car owners. The EV version has also seen increasing popularity among women, who make up 25% of its buyer base. Punch has seen demand from across urban and rural areas, with 24% of sales coming from tier1 cities, 42% from tier2, and 34% from tier3 towns. It continues to contribute substantially to Tata Motors’ overall passenger vehicle portfolio, accounting for 36% of sales.
Analysts said that as competition intensifies further, the challenge for Tata Motors will be to decide whether and when to update the Punch to maintain its presence in the fastmoving compact SUV segment.
