NEW DELHI: Tata Motors Passenger Vehicles Ltd (TMPV) is confident of outpacing passenger vehicle (PV) industry growth in calendar year 2026, backed by robust demand for its recent launches. Starting with the micro SUV Punch, TMPV plans another year of aggressive launches, including the Sierra EV and its luxury sub-brand Avinya.
“Last quarter (Q3FY6) industry grew very strongly compared to the same quarter of the previous fiscal (Q3FY25). I think the demand will get moderated this year but it will still be strong. Our expectation is that the PV industry will grow by 8-10% in CY2026 and we expect Tata Motors to outpace the industry growth,” Vivek Srivatsa, Chief Commercial Officer of Tata Passenger Electric Mobility told TNIE.
Fuelled by the GST rate cut in September last year, India’s PV industry registered its strongest-ever annual and quarterly performance in 2025 and in Q3FY26. According to data released by the Society of Indian Automobile Manufacturers (SIAM), PV domestic sales in October–December 2025 rose to an all-time high of 12.7 lakh units, a 20.6% growth over the same quarter last year. Tata Motors’ sales in the domestic & international markets in Q3FY26 stood at 171,013 units, up 22.3%.
“Demand seems to be robust in January. It is better than last year and hopefully it will continue like this. Impact of GST combined with festive demand which was not fully fulfilled during the season are main trigger at the moment. Also, a lot of new products are coming in and adding volume to the pipe,” said Srivatsa on the sidelines of the new Punch launch on Tuesday.
Tata Motors expects a sharp pickup in the volume of Punch which sells 10,000-15,000 units per month. “We have really upgraded Punch. It looks much more SUVish now. We are also introducing a new turbo powertrain which is going to bring a fresh set of customers. We are definitely expecting the new Punch to bring more volume,” said Srivatsa.
He also informed that bookings for Sierra continue to be “very strong” and there will be a waiting period. Tata Motors is set to commence delivery of the mid-size SUV from January 15. “We have already worked on capacity expansion to significantly reduce waiting time. To begin with, we expect to deliver 10,000 units of Sierra per month and increase production by 25% from next quarter,” said Srivatsa.
Tata Motors on Tuesday launched the new Punch combines at an introductory starting price of Rs 5.59 lakh (ex-showroom, New Delhi). The subcompact SUV debuted in October 2021 and has been sold to 700,000 customers, making it one of the most successful products for Tata Motors.
Shailesh Chandra, MD & CEO, Tata Motors Passenger Vehicles said that Punch has always been a reflection of India’s evolving ambitions, democratizing the SUV experience with a feature-rich package that earned it a place among India’s best-selling SUVs.
“With the new Punch, we’ve redefined what an SUV in this segment can be – shaped by customer insights and engineered with new age technology at its core. It’s faster, smarter, and safer, complemented by a bold, muscular stance with the confidence to truly Command Max,” added Chandra.
According to Tata Motors, the new Punch dominates the subcompact-SUV segment with an uncompromising blend of strength, sophistication, and cutting-edge innovation. The new Punch comes in different powertrains: Petrol, CNG, and a segment-first iTurbo Petrol paired with a manual transmission. It also has first in segment iCNG technology with AMT gearbox.