Tata Motors to Outperform Car Market in FY2026
With the launch of the updated Punch, Tata Motors aims to redefine the entry-level SUV segment, featuring a new turbo-petrol engine and enhanced interiors. This model has consistently ranked among the top-selling vehicles, reflecting Tata's strategy to maintain strong sales figures and customer satisfaction.
Pune: Tata Motors, which overtook archrival Mahindra and Hyundai in Q3 (Oct.Dec.2025) to emerge as the second largest passenger vehicle maker, is betting big on outperforming the automobile market in FY26 with a strong product lineup and sales momentum.
The automaker expects the car industry to deliver double-digit growth in 2026, riding on a sharp rebound in demand following GST 2.0 reforms and new product launches, Vivek Srivatsa, CCO-Tata Motors, told FC.
“With our new product lineup, we are hoping to outperform the car market which is likely to touch 8-10 per cent in 2026,” Srivatsa said, adding that the new Tata Sierra SUV was being dispatched to dealers for sale this month, with bookings better than expected.
On Tuesday Tata introduced the Punch facelift, its most successful entry level-SUV, aggressively priced from Rs 5.59 lakh onward. Last year, it was the number 1 selling car, but even after 2024, Srivatsa said its volumes continue to be over 15,000 units a month.
Mr. Shailesh Chandra, MD & CEO , Tata Motors Passenger Vehicles Limited with the All New Tata Punch in Cyantafic colour.
The popular Punch has sold 6,78,176 units in less than four years since the model’s first launch on October 21, 2021.
Srivatsa said Punch has also been one of the most consistent performers in the top 10 every month and he expects the demand to be consistent and steady to drive volumes.
The new Punch, which sports the most comprehensive update for the interiors and exterior, with a host of new features, also comes with a new turbo-petrol engine for the first time.
“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,” said Shailesh Chandra, MD & CEO, Tata Motors Passenger Vehicles.
The company is expanding its SUV portfolio across price points and powertrains, including the recently launched Sierra, and petrol variants of Harrier and Safari, which are expected to add incremental volumes.
Experts pointed out that the broader portfolio refresh is aimed at strengthening Tata Motors’ position across compact, mid-size and premium SUV segments, where demand has remained structurally strong.