We're at the launch of the new Tata Punch and with us today is Shailesh Chandra, the MD and CEO of Tata Motors. Sesh, thank you for having us. So the first thing I have to ask you: I'm sure you've heard this pun, the Punch is finally getting some punch with the turbo engine. What's your expectation for 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 in every corner of the country. In the last four years we've seen customer segments looking for spritier cars, and use cases like hilly terrains needed more power. So that's why we came with the turbo. Generally, the significant part of sales still comes with the engine that balances performance and fuel efficiency. NA will remain the primary engine, and turbo will add to the customer base we were missing. The exact percentage will be discovered in coming months, but the balance will be in favor of NA.
And turbocharge will add to the customer base of what we were missing otherwise.
So exact percentage is something to be discovered in the coming months, but broadly the balance will still be in favor of NA.
In favor of NA, great. And Sesh, you've 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 performance difference between petrol and CNG, no loss of boot space with the twin cylinder innovation, no lack of feature-rich cars, and now no automatic option missing. This car is the first AMT in CNG in this category. As of last calendar year, CNG penetration reached 28% of our total sales, and for Punch it was 35%. In entry segment cars, there is greater attraction for CNG. Last year we sold nearly 160,000 CNG cars, accelerating from 2022. This is emission-friendly and helps as regulations get stringent.
We came with the twin cylinder innovation, and we offered CNG in higher trims.
The fourth compromise was no automatic in CNG, so we addressed that. This car is the first AMT in CNG in this category. Now, coming to performance: our CNG penetration went up to 28% overall and 35% for Punch. We sold nearly 160,000 CNG cars last year, accelerating from 2022. It's a segment with few offerings, and we have compelling innovation.
In Punch, this number was 35%.
So 28% for the entire portfolio, 35% for Punch. Entry segment cars have greater attraction for CNG. We sold nearly 160,000 CNG cars last year. It's emission friendly and will help as regulations become more stringent. This also helps the environmental cause.
And as regulations become more stringent.
This will really help us for the overall environmental cause of the country.
I just want to talk a little further about something you said: when you first entered CNG, you wanted to achieve a premiumization of CNGs. You've gone down a fantastic path with high-end features, automatic, etc. What's been the takeup? Are those high-end models being sold, or is the bulk still low-end CNG?
When you compare with other powertrains, the off take of higher trims is lesser. But we didn't want to stereotype CNG customers. If a customer wants CNG plus higher end trims, we wanted to give that option. Entry segments sell more because it's a price-sensitive segment, but we have given this option.
Fair enough. So definitely it is less as compared to that... entry segments sell more.
They are very smart in choosing what features they want, but we have given this option, and apart from that, more transmission options.
So I think that's fair enough. I would assume the volume is significant enough because you're continuing this journey with the Punch as well. Now looking at the Punch's journey, it has been a phenomenal success. At one point it was India's largest selling car, but it dipped to position 9 or 10 last year. Do you think with the turbo, CNG automatic, you'll move back up the ladder?
