New Punch EV targets first-time buyers with aggressive pricing: Vivek Srivatsa

With the Punch EV facelift priced from ₹9.6 lakh, Tata Motors is doubling down on affordability to expand EV adoption among first-time car buyers. The sharper pricing comes on the back of increased localisation, easing battery costs, and engineering efficiencies.

“It’s a mix of localisation, softening battery prices, and internal optimisation," said Vivek Srivatsa. He noted that over 50% of the vehicle is now locally sourced, a factor that has materially helped in bringing down costs. While specifics remain undisclosed, Srivatsa added, “more than 50% localisation has definitely helped us arrive at this pricing."

The company has also focused on reducing complexity through design. “The 6-in-1 drivetrain reduces a lot of components and enables cost optimisation," he said, describing it as part of a broader effort to “right-size the product" for entry-level buyers.

Alongside pricing, Tata Motors is experimenting with new financing approaches. The Punch EV facelift introduces a Battery-as-a-Service (BAAS) option, which splits the financing of the car and battery into separate EMIs. “It’s essentially a financial product," Srivatsa said, adding that the battery component is spread over a longer tenure (up to eight years) reducing the upfront monthly outflow.

The move is aimed at first-time buyers, where affordability remains critical. “For them, every thousand rupees of EMI matters," he said. However, Srivatsa acknowledged that BAAS adoption in the market remains limited. “Current take rates are not very high… this is more of an exploratory step to ensure customers have multiple options."

The company expects the Punch EV’s share in the overall lineup to rise from about 10% earlier to nearly 15% post-facelift, aided by the revised pricing. While the new pricing brings it closer to other Tata EVs, Srivatsa indicated the company is comfortable with some overlap. “Some amount of cross-consideration will always happen… it’s better for customers to be confused within our showroom than outside," he said.

On the product front, the facelift introduces larger battery options, including a 40 kWh pack in the long-range variant with a claimed real-world range of around 355 km. Fast-charging capability (adding up to 135 km in 15 minutes) further expands its usability. “This makes it viable not just as a city car, but also for highway use," Srivatsa noted.

Despite these upgrades, the positioning remains unchanged. “We are targeting first-time car buyers, not just first-time EV buyers," he said. For many in this segment, the vehicle serves multiple roles, making versatility key. “For them, it’s the only car in the household," he added.

As competition intensifies, Tata Motors is betting that a mix of affordability, flexibility, and everyday usability will help more buyers transition directly to electric mobility.

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