Tata Motors is repositioning its electric vehicle roadmap around the entry-level market, arguing that EVs cannot achieve scale in India unless the sub-₹12 lakh category gains momentum, as per news reports.
The company has introduced a refreshed Punch.ev alongside a battery-as-a-service option to make ownership costs more accessible.
The updated Punch.ev is priced at ₹9.69 lakh ex-showroom Mumbai. Under the optional battery-as-a-service structure, customers can purchase the vehicle at ₹6.49 lakh and pay ₹2.6 per km as a battery usage charge.
The model currently sells around 1,500 to 1,800 units per month, and volumes could rise 30–40% following the refresh.
Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles Ltd. and Tata Passenger Electric Mobility, said, “Below ₹12 lakh, the EV market is negligible.” He added, “Unless we crack this segment, EVs will not become mainstream in India.”
BaaS will gradually be extended to other entry-level EVs such as Tiago.ev. Chandra clarified, “It is not really a service. It is a twin-EMI structure,” noting adoption currently stands at 2–3%.
Over 3 million passenger vehicles are sold annually in the sub-₹12 lakh bracket, which represents 65% of demand.
Yet EV penetration in this segment is just 1.5%. By contrast, EV adoption in the above-₹12 lakh category has reached 10%. Across the broader 4.2 million-unit passenger vehicle market, overall EV penetration remains between 4–5%.
Chandra expects the overall passenger vehicle industry to grow close to 10% in FY27, supported by a lower base in the previous period. EVs are projected to maintain double-digit growth.
With Maruti Suzuki launching its first EV, competition in the segment is intensifying. Chandra welcomed this development, saying broader participation by major players will expand the category.
Within the Punch portfolio, EV penetration is around 10%, while overall clean-energy penetration including EV and CNG has climbed to 43%. The company expects Punch EV penetration to rise to 15–20% in the near term and stabilise at 25–30% by 2030.
Regionally, EV share is significantly higher in markets such as Jaipur and Kerala, where EVs account for 30–40% of Tata’s passenger vehicle sales.
Read More: Tata Chairman Denies AI Link to TCS Layoffs, Cites Performance Focus!
As of 23 February 2026, at 9:35 AM, Tata Motors Ltd share price is trading at ₹380.70 per share, reflecting a gain of 0.71% from the previous closing price. Over the past month, the stock has gained by 10.52%.
By lowering upfront costs through BaaS and concentrating on the ₹12 lakh threshold, Tata Motors is attempting to unlock mass-market EV demand. The strategy hinges on scale in the entry category, supported by capacity optimisation and portfolio electrification.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Feb 23, 2026, 11:12 AM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
