Mumbai, January 22nd, 2024 – Tata Motors is looking to ramp up sales of its electric micro-SUV significantly, the Tata Punch EV, to sell 25,000 to 30,000 more units this year. The automaker has seen strong demand for the affordable electric car since its launch in October last year.
The Punch EV is the electric variant of Tata’s popular Punch micro-SUV, first introduced in 2021. The electric model offers a real-world range of around 200 km on a single charge and starts at just Rs 8.5 lakh, making it the most affordable electric car currently on sale. Tata is now working to scale up production to meet the robust demand.
“The Punch EV has received a phenomenal response from customers across India. The combination of Tata Motors’ proven EV technology, Punch’s bold SUV styling, and accessible pricing point has clicked with buyers. We have already sold around 10,000 units and expect the momentum to accelerate this year as more customers switch to EVs,” said Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility.
The automaker has set itself an ambitious target to sell 25,000-30,000 units more over the rest of 2024. This would represent a significant jump from 2022 sales of around 10,000 units.
Tata Motors is ramping up supply chain capabilities and manufacturing operations to enable the required jump in production volumes. The company’s Pune facility already produces the Punch EV and will continue leading manufacturing efforts. Expansion to new sites is also underway.
“Achieving this scale will require expanding capacity across the supply chain – from battery cells to semiconductors to other components. We are working closely with all our vendors to ramp up swiftly. We are also maximizing output from our existing production sites and looking at adding new sites to the EV manufacturing network,” Chandra added.
The company has launched an all-out effort to position the Punch EV for even higher volume sales. Marketing campaigns are being expanded to raise awareness about the model. The sales and service network is also being strengthened to cater to the increased customer base. Test drive events are being held in cities across India to give prospective buyers first-hand experience.
Tata is expected to launch more affordable EV models through 2024, further boosting its position in the high-growth electric car market. The automaker already sells the Nexon EV and Tigor EV alongside the Punch EV. It is also working on new EV models based on its Altroz and Sierra SUVs.
Industry analysts are bullish on Tata Motors ‘EV strategy given its aggressive pricing and focus on practical affordable models.
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“The Punch EV is a game-changer for the electric car market. It offers a real chance for mainstream buyers to go electric without paying a big premium over comparable petrol cars. If Tata Motors can scale up Punch EV volumes to 25,000-30,000 units this year, it will force other automakers to follow suit with more affordable EVs,” said Ravi Bhatia, President & Director, JATO Dynamics India.
Tata Motors’ success has also been aided by the wider EV ecosystem developing in India. More charging stations are coming up across the country, making adoption easier. Government subsidies under the FAME II scheme have also helped stimulate consumer interest. But Tata’s accessible pricing continues to be the biggest driving factor.
The automaker’s sales target for the Punch EV in 2024 is aligned with the company’s broader electrification goals. Tata Motors aims for EVs to make up around 20% of its total annual sales within the next few years. Ramping up Punch EV volumes will be key to getting there.
With rising fuel prices and climate change concerns, India’s EV revolution is well and truly underway. And Tata Motors aims to lead the charge with its affordable, practical electric cars for the masses. The Punch EV looks set to drive a significant jump in EV adoption and establish Tata as the top EV manufacturer in India.