Tata Motors, India’s dominant electric vehicle manufacturer, has launched an aggressive strategy to scale EVs in the country’s most competitive price bracket. Recognizing that the sub-₹12 lakh segment—which accounts for nearly two-thirds of India’s passenger vehicle demand—remains largely untapped by electric mobility, the company is widening its BaaS (Battery-as-a-Service) offerings beyond the newly refreshed Punch.ev to include models like the Tiago.ev. The updated Punch.ev has been launched at an ex-showroom price of ₹9.69 lakh. However, under the BaaS structure, the upfront “sticker price” drops significantly to ₹6.49 lakh. Customers pay a usage fee of ₹2.6 per km. To achieve near-on-road price parity with traditional internal combustion engine (ICE) petrol cars. Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicle Ltd, remains pragmatic about the model. He describes BaaS as a “twin-EMI structure” rather than a traditional service. It acts as a visualization tool that helps budget-conscious buyers compare the daily running costs of an EV with those of a petrol car. ‘Below ₹12 lakh, the EV market is negligible. EV penetration here is only 1.5%, compared to 10% in the above-₹12 lakh segment. If this segment does not get electrified, you will never achieve the objective of EV mainstreaming.” — Shailesh Chandra, MD, Tata Motors PV & TPEM.
Tata Motors is not just relying on financing; it is enhancing the core value proposition of its entry-level EVs to eliminate “range anxiety” and facilitate intercity travel. The Punch.ev now offers 30 kWh and 40 kWh options, with the latter delivering a real-world range of approximately 355 km. With faster charging (20% to 80% in 26 minutes), the vehicle is being repositioned as a viable single-car option for a household. Unlike earlier conversions, the underlying Acti.ev platform is a dedicated electric architecture, ensuring better space and efficiency.
