From January to July 2024, Tata Motors' Punch became India's best-selling car, surpassing Maruti Suzuki's WagonR. The Punch gained popularity due to its micro SUV design and variety of fuel options, including electric and CNG. However, in July, Hyundai Creta took the lead, pushing the Punch down to fourth place in sales rankings.

Tata Motors' Punch has taken the lead as India's best-selling car, surpassing Maruti Suzuki's WagonR with more than 1,26,000 units sold between January and July 2024. This achievement ends Maruti Suzuki's long-standing dominance in this segment.

However, in July, the Punch dropped to fourth place, with the Hyundai Creta taking the top spot, 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 believe the Punch's success is due to the new category it has created. "As a micro SUV, the Punch provides SUV-like features at a more affordable price. Additionally, its shift from being all-petrol in 2023 to offering multiple fuel options now meets different consumer needs and addresses concerns about fuel costs," said Ravi Bhatia, president of Jato Dynamics.

Car dealers also point out that the Punch's diverse fuel options have boosted its sales. A dealer from Chennai mentioned, "Sales jumped from just over 79,000 units last January to July to 1.26 lakh units now, largely due to the introduction of its electric and CNG variants." In contrast, the other four cars in the top five only offer CNG or diesel as alternatives 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."

Punch's successful dual-fuel strategy has caught the attention of other car manufacturers. Hyundai's Exter, launched in July 2023, has seen its sales grow from 7,000 units in its first 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.