Tata Motors is introducing a competitively priced electric version of its Punch model as it seeks to expand EV adoption in India’s budget segment. With roughly 65% of the 4.6 million passenger cars sold in India last year priced under $13,200, only 1.6% of those entry-level vehicles were electric, compared with 10% among higher-priced categories. Limited model availability, concerns over range, slow charging times and battery durability have constrained demand in this price tier, according to Tata Motors CEO Shailesh Chandra.
Priced from $10,650, the standard Punch EV lineup includes a long-range variant capable of covering 350 kilometers (217 miles) on a single charge at $13,850. Tata Motors says the vehicle’s battery can be charged from 20% to 80% in 26 minutes using a fast charger, and comes with a lifetime warranty. To lower the initial purchase cost further, the company offers a battery-separation option that reduces the vehicle’s price to $7,100. Under this scheme, customers pay for battery usage separately at a rate of three cents per kilometer.
India’s government aims to raise electric vehicles to 30% of total auto sales by 2030, up from around 5% today, to curb fuel imports and urban pollution. However, recent EV sales growth has slowed, prompting automakers to introduce incentives and discounts. Chandra acknowledged that Tata Motors is willing to accept lower margins on its EV range to accelerate electrification, while adding that current EV profits are not far below those of combustion-engine vehicles.
As India’s largest electric vehicle seller, Tata Motors faces competition from JSW MG Motor, SAIC’s local joint venture and Mahindra & Mahindra. Maruti Suzuki, the country’s biggest automaker, has also entered the segment with its e-Vitara SUV, priced at about $12,000 for the base model (battery leased separately) and $22,000 for the long-range version.
Source: Reuters
