- 27 Dec 2024
- ICICI Securities
PUNCH ALL SET TO BE THE TOP SELLING MODEL IN INDIA
News: According to media sources, Tata Motors' Punch is projected to become India's top-selling car model in 2024, climbing six places in the rankings. With approximately 186,958 units sold from January to November 2024, the Punch is set to overtake established leaders like Maruti Suzuki's Swift and Hyundai's Creta, as well as Tata's own Nexon and other popular models such as Maruti's Wagon R, Baleno, and Brezza. Its appeal among first-time buyers and small families, bolstered by strong safety ratings and a range of powertrain options—including petrol, CNG, and electric—positions it favourably in the competitive compact SUV market. Estimates are that the Punch will exceed 200,000 units sold by year-end, reflecting a growing consumer preference for SUVs in India.
Views: This is a remarkable feat for tata Motors which is the 3rd largest PV player domestically with ~13-14% market share. CY25E is expected to be a good year for Tata Motors with new launches in the EV space. With stock correcting more than 30% from its peak, it offers a good entry point for long term investment horizon given turnaround in place at JLR, substantially reduction in automotive debt on B/S and focus on healthy profitability for Indian operations. Added positive is recent order wins in the domestic bus space which shall result in likely flattish CV volumes for FY25E.
Impact: Positive