In conversation with Sergius Barretto - Managing Editor, Autocar India - , Shailesh Chandra - MD & CEO, Tata Motors Passenger Vehicles talks of the updated Punch, driving demand with features, CNG growth and more.
Cameraperson: Sharad Vegada
Editor: Deven Bhalla
Explore full details of the Tata Punch : https://www.autocarindia.com/cars/tat...
Chapters -
0:00 - Introduction
0:30 - Demand for turbo variant
2:20 - CNG demand growth
5:00 - Premiumisation of CNG
6:20 - New Punch sales expectation
9:25 - Balancing features and price
13:55 - Response to Tata Sierra
15:20 - Tata Sierra bookings f...
Questions asked in this interview
10
0:03What is your expectation in terms of sales of this variant?
2:02What has the CNG segment been like and what is the expectation with the AMT?
4:30What has been the take-up of high-end models versus lower trims?
5:47Do you think the turbo and CNG automatic will push it back up?
8:30How far can this go given pricing constraints?
13:41That leaves me to ask about the Sierra, your new flagship. How has the response been?
15:07Since you won't give the new booking number, can you share the split by fuel or variant?
16:09And GDI doesn't have a manual. Will you address that?
16:47Some say double-digit growth. Do you think that's possible?
18:01Does that mean you'll take the number two position?
We're at the launch of the new Tata Punch and with us today is Sesh Chandra, the MD and CEO of Tata Motors. Sesh, thank you for having us here and congratulations on the launch. The first thing I have to ask you: the Punch finally is getting some punch with the turbo engine. What is your expectation in terms of sales of this variant?
When we launched Punch in 2021, the value proposition was simple: if you can afford a hatch but aspire for an SUV, this was the sweet spot. It has been doing great and is bought by customers across the country. In the last four years, we saw customer segments looking for more spirited cars, especially in hilly terrains. That's why we introduced the turbocharger. Generally, the naturally aspirated engine remains the primary choice for its balance of performance and fuel efficiency, and the turbo will add to the customer base we were missing. The exact percentage will be discovered in the coming months, but the balance will still favor NA.
In favor of NA is great. And Sesh, you've also introduced the CNG AMT automatic. What has the CNG segment been like and what is the expectation with the AMT?
We entered CNG in 2022 with the Tiago and Tigor. Our philosophy was no compromise: no difference in performance between petrol and CNG, no loss of boot space with our pin cylinder innovation, and we offered feature-rich cars. The fourth compromise was no automatic option, so we addressed that with the first AMT in this CNG segment. As of last calendar year, our CNG penetration reached 28% of total PV sales, and for Punch it was 35%. We sold nearly 160,000 CNG cars last year, accelerating our journey in just three years.
The offtake of higher trims is lesser compared to entry trims, but that was not the point. We wanted to give the option to customers who want CNG plus higher-end features. We did not want to stereotype CNG customers. Entry segments sell more because it's price-sensitive, but we have given the option for higher trims and more transmission options.
That's fair. Looking at Punch's journey, it was India's largest selling car, then dipped to position 9 or 10. Do you think the turbo and CNG automatic will push it back up?
We are very confident. When we launched Punch in 2021, we started at 8,000 units a month, then grew to 17-18,000 on the back of multi-powertrain options. It peaked in CY24 as the number one selling car with over 2 lakh units. Last year it came down to about 175,000, but retail was around 185-190,000. The dip was due to pressure on entry cars in the first 8 months and rumors of a facelift. But with GST 2.0, the price reduction helped, and we exited with no inventory. With the new turbo and CNG AMT, we expect to hit the next peak.
So this isn't just a correction but will push it higher. On feature enrichment, you've added a 360-degree camera and screens. How far can this go given pricing constraints?
It's conflicting. Gen Y wants digital features, but there is also a trend toward simplicity. We offer both options. I believe over time, things will move toward simplicity. We are careful about price positioning. We have done cost reduction actions to keep the price within Punch's bandwidth. Feature addition will continue, with features trickling down from higher segments. For example, 10-inch screens and 360 cameras are now in this segment.
Chandra, S. (2026, January 13). New Tata Punch, market for turbo, sales expectation and more - Shailesh Chandra | Q&A| Autocar India [Interview transcript]. Autocar India. CEOInterviews.AI. https://ceointerviews.ai/interview/1052252/
MLA
Shailesh Chandra. "New Tata Punch, market for turbo, sales expectation and more - Shailesh Chandra | Q&A| Autocar India." Autocar India, 13 Jan. 2026. Transcript, CEOInterviews.AI, https://ceointerviews.ai/interview/1052252/.
BibTeX
@misc{chandra2026_1052252,
author = {Shailesh Chandra},
title = {New Tata Punch, market for turbo, sales expectation and more - Shailesh Chandra | Q\&A| Autocar India},
howpublished = {Interview transcript, Autocar India. CEOInterviews.AI},
year = {2026},
month = {jan},
url = {https://ceointerviews.ai/interview/1052252/},
note = {Speaker-attributed transcript with timestamps}
}
