CARVERSAL

Tata Punch Outsells Hyundai Exter Amid Surging Demand in 2025

March 25th, 2025

Remember when Hyundai launched the Exter, hoping to shake up the compact SUV segment? Well, that battle seems to be tilting heavily in Tata Punch’s favor. Well above 500,000 sales by January 2025, Tata Punch generated enough interest to grab this year's number-one position in compact SUVs nationwide. Although there was a price increase of ₹17,090, Tata Motors stretched out its hand, offering ₹25,000 worth of discounts that kept the demands moving well.

Meanwhile, Hyundai Exter struggles with supply. Despite a 30% production boost in late 2024, growing backlogs may delay deliveries, making Tata Punch the more accessible choice.

If you had your eyes on the Exter, brace yourself—it might just remain a dream. Here’s why.

Tata Punch Demand Increased, Hyundai Exter

Tata Punch’s Record-Breaking Sales Streak

Tata Punch has achieved something extraordinary—it’s now India’s best-selling SUV, hitting the 5-lakh sales milestone in just over three years. That’s not just a win, it’s making a  market dominating statement. While the Hyundai Exter has been battling production challenges, the Punch has been flying off the shelves. 

Some key figures to consider: 

  • In FY2024, Tata sold 1,69,844 units of Punch, averaging 14,153 units per month.
  • As of December 2024, FY2025 sales have already reached 1,48,068 units—87% of the previous year’s tally.

  • Punch’s monthly sales growth has jumped by 27% year-on-year in the past nine months.

In contrast, Hyundai Exter, despite a promising launch, has struggled to keep up with demand due to supply chain issues. With waiting periods stretching up to nine months, buyers are getting impatient and switching to the Punch instead.

Price Hike? Still in Demand

Normally, price hikes result in lower demand. Punch, however, defies that logic. Tata Motors raised prices for several Punch variants in 2025, increasing from Rs 7,090 to Rs 17,090. Customers still bought the SUVs in droves. Even that price going up from the base 5.49 lakh (at launch) to Rs 6.20 lakh in 2025 doesn't seem to concern buyers.

Hyundai, on the other hand, is facing a different challenge. The Exter’s pricing, starting at Rs 6.20 lakh, now overlaps with multiple variants of the Punch. With Tata’s aggressive pricing strategy, the Punch appears to be offering more value for money, leaving Exter buyers second-guessing their choice.

Punch EV Making an Impact

Punch EV Making Impact

Here’s where Tata really turns the tables—electric vehicles. The Punch EV, launched in early 2024, is responsible for 15% of total Punch sales. With rising fuel prices and government incentives on EVs, more buyers are considering electric SUVs.

Hyundai Exter? No EV version in sight. While Hyundai’s Kona and Ioniq 5 cater to premium buyers, the Exter remains stuck in petrol and CNG territory. This gives Tata a massive advantage in the long run.

Production Woes: Hyundai Can’t Keep Up

One of the biggest reasons Exter is struggling is production. By October 2023, Hyundai had to increase its production capacity by 30% to meet demand. Yet, waiting periods for some Exter variants still stretch up to nine months.

Tata Motors, on the other hand, has been far more efficient with its production and deliveries. The ability to keep up with demand is one of the reasons why Punch continues to gain market share while Exter struggles to fulfill existing orders.

The Tata Punch Hype Isn’t Just About Numbers

The Tata Punch Hype

Sure, sales figures are impressive, but why do people keep choosing the Punch over the Exter? Here’s what makes it special:

  • SUV Appeal: Tata Punch has a bold, muscular SUV-like stance that attracts buyers. Comparatively, Exter leans more toward a crossover design.
  • Safety First: Tata's safety credentials need no introduction, and the strong build is one of Punch's most prominent selling points. The Hyundai Exter has yet to build trust on this front.
  • Loaded with Features: The Punch is a solid value proposition. It has various features that are mainly seen in high-priced cars.

  • Brand Loyalty: Tata Motors has a strong and emotional connection with its customers. Risen after the success of the Nexon and Harrier.

Conclusion: Is the Exter’s Future in Trouble?

The Hyundai Exter had a promising start, but with production struggles, long waiting periods, and the Tata Punch’s unstoppable rise, its future looks uncertain. Unless Hyundai finds a way to improve supply, bring in an EV version, or seriously rethink its pricing strategy, the Exter might never make it to as many homes as Hyundai hoped.

For now, the market has spoken, and it’s chanting one name loud and clear—Tata Punch!

Read More: How 2025 Tata Nexon becomes the Safest affordable SUV in India !!

FAQs

1. Is Tata Punch safer than Hyundai Exter?

Yes, the Punch has a 5-star Global NCAP safety rating, while the Exter doesn’t have an official rating yet.

2. Why is the Hyundai Exter taking so long for delivery?

Hyundai is dealing with supply chain and production issues, so there are long waiting times. Tata Punch is more readily available.

3. Which one has a better infotainment system?

Both have touchscreens with Android Auto & Apple CarPlay, but Exter’s screen is slightly bigger and smoother.

4. Which one gives better mileage, Punch or Exter?

Both are close in petrol—around 18-20 kmpl. But the Punch CNG and EV versions make it a better pick for fuel savings.

5. Is the maintenance cost higher for Tata Punch or Hyundai Exter?

Maintenance costs for both the cars are generally similar, but Tata service centers are sometimes criticized for after-sales service quality. Hyundai has a better service network.

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