Punch EV will not cannibalise our other electric car sales but will be category creator: Tata Motors MD

Shailesh Chandra, Managing Director (MD), Tata Motors Passenger Vehicles Limited & Tata Passenger Electric Mobility Limited (TPEML)

Tata Motors’ Punch packs a wallop. The micro SUV was one of the first Indian vehicles to earn five-star and four-star ratings for adult and child occupants, respectively, from automobile safety audit firm Goal NCAP. The Punch has now been launched in an electric avatar, in the price range of Rs 10.99-14.49 lakh, and the company states that the electric version of its mini-SUV fills the 'sweet spot ' between Tiago EV and Nexon EV.

A senior company official maintained that the Punch EV will attract a “new set of buyers” who are not just ‘tech-savvy” but are also looking for intercity commutes and also “outdoorsy experiences”.

In a virtual interaction with the media, Shailesh Chandra, Managing Director (MD), Tata Motors Passenger Vehicles Limited & Tata Passenger Electric Mobility Limited (TPEML), pointed out that in India, 60 percent-plus buyers are less than 35 years of age and are tech-savvy. Such a cohort would look for a vehicle that fits in with their gadget-filled lifestyle but have a certain price point in mind.

“They are also people who are going for outdoorsy experiences and if you offer a product thatΩ is full of the digital experience and at the same time gives you the freedom of doing 400 km-plus at a sub (Rs) 15-lakh price point, it really creates a new set of customer segment (who is) going for this kind of an EV which is not limiting them to just city use,” stated Chandra.

The Punch EV, which is now making its way to local dealerships, will be offered in five variants: Smart, Smart+, Adventure, Empowered and Empowered+. It is available with two battery pack options: a 25 kWh version with a claimed range (MIDC or Modified Indian Driving Cycle) of 315 km and a long-range (LR) version with a 35 kWh battery pack that has an MIDC of 421 km.

Chandra said that the company believes that the Punch EV, which he said comes with features seen in cars slotted two segments above the Punch, will seamlessly fit into the lives of younger customers who typically are also technophiles. “It will create absolutely a new segment  (as with) Nexon  EV and Tiago EV we have seen very different customer profiles,” added Chandra.

However, industry observers reckon that the latest offering, despite giving additional numbers to Tata Motors, may also eat into the sales of the Tiago EV (priced in the range of Rs 8.69-12.04 lakh) and Nexon EV (Rs 14.74-19.94 lakh). The company, however, believes it is not a cause for concern as its overall EV customer base will expand.

“As far as cannibalisation is concerned, early adopters, who are mainly using electric cars so far far, do shift. Majority of them (use EVs) as a second or a third car in the family but as a primary vehicle, do switch from one segment to the other, keeping the overall requirement of EVs the same. But Punch  EV is a unique product that is coming in,” noted Chandra.

New EV releases

Tata Motors, sold 50,000 electric vehicles in FY 2022-23, is also looking to widen its EV portfolio by rolling out Currv EV in mid 2024, followed by Harrier EV and Sierra EV during the end of this year. Also on the cards is the electric variant of Altroz hatchback by early next year. At present, the contribution of EVs varies from 12 to 15 percent in terms of volumes and 17 to 20 percent in terms of turnover.

Chandra revealed that Tata Motors aims to sell one lakh electric vehicles in the current financial year and anticipates that battery-driven cars will contribute 25 percent to its sales by 2025-26 and 50 percent by 2029-30.

Meanwhile, Tata Motors expects the EV industry sales growth in the country to moderate to 40-45 percent this year with the base becoming bigger.

"Two years back, EV segment was growing on a very low base. Even In the last calendar year, it had a growth of nearly 100-150 percent but now the base is getting bigger. By the end of this financial year, it will be around 90,000 to 1,00,000 (units). On this high base, I think the growth (of the EV industry) would moderate to about 40 percent to 45 percent," stated Chandra.