However, in July, Punch slipped to the fourth position, with Hyundai Creta taking the lead, according to data from auto market research firm Jato Dynamics.
The rise of Punch signifies a shift in consumer preference towards alternative fuel options, which now represent nearly half of the top 5 sales. Electric and CNG variants make up 47% of Punch’s total sales, while CNG has become a significant contributor to the sales of Maruti Suzuki’s WagonR (45%), Brezza (27%), and Ertiga (58%).
Auto industry experts attribute Punch’s success to the new category it has created. “As a micro SUV, the Punch offers SUV-like features at a more accessible price point. Also, its multi-fuel approach (it was all-petrol in 2023) caters to varying consumer preferences and concerns about fuel costs,” said Ravi Bhatia, president of Jato Dynamics.
Car dealers also highlight the impact of Punch’s fuel mix on its sales. A Chennai-based dealer noted, “It went from just over 79,000 units last Jan-July to 1.26 lakh units now thanks to its electric and CNG variants.” The other four cars in the top five either have CNG or diesel as the only alternative to petrol.
Vivek Srivatsa, chief commercial officer of Tata Passenger Electric Mobility, stated, “The Punch has become the fastest vehicle to cross the 4 lakh sales milestone in SUVs.”
The success of Punch’s dual-fuel strategy has not gone unnoticed by other car manufacturers. The Hyundai Exter, launched in July 2023, has seen its sales rise from 7,000 units in its launch year to 52,684 units in 2024.
“For OEMs, the strategy appears to be diversifying fuel options to cater to different consumer needs and regulatory environments and focusing on the micro SUV segment to capture price-sensitive customers who want to own an SUV,” added Bhatia.