Revving Up: India's SUV Surge

Passenger vehicle sales in India are forecasted to grow by 10% in 2026, driven by strong SUV demand following GST rate cuts. Tata Motors, led by CEO Shailesh Chandra, aims for substantial growth with new launches and product updates in the industry.

Passenger vehicle sales in India are poised for a 10% growth in 2026, bolstered by the effects of recent GST rate reductions, particularly benefiting SUV demand, according to Tata Motors Passenger Vehicles MD and CEO, Shailesh Chandra.

Tata Motors is proactively preparing to outpace industry growth with a strategic lineup of vehicle launches this year. This includes updates like the revamped compact SUV Punch, launched at a starting price of Rs 5.59 lakh, and upcoming full-year sales impacts from models such as Sierra and petrol variants of Safari and Harrier SUVs.

Chandra remains optimistic about the sector's double-digit growth trajectory, citing the sustained interest in SUVs and the potential market expansion in the sub-compact SUV segment, where the Punch competes against models like Hyundai Exter and Skoda Kylaq. This segment is now witnessing monthly sales reaching 40,000 units, driven by GST-related price reductions and robust consumer interest.

(With inputs from agencies.)