Tata Punch EV to Face Tough Fight: Maruti and Hyundai Compact EVs on the Horizon

Tata Punch EV to Face Tough Fight: The Indian electric vehicle (EV) market is heating up rapidly, and at the center of this race is the Tata Punch EV. Since its launch in early 2024, the Punch EV has established itself as one of the most popular electric cars in the country. Customers were quick to embrace its compact SUV styling, strong safety performance, multiple battery options, and feature-loaded

 cabin. Tata’s early-mover advantage gave it a dominant market share, but that grip is now under pressure as Maruti Suzuki and Hyundai prepare to enter the compact EV space with their own powerful alternatives.

Despite its initial dominance, Tata’s EV market share has already slipped from 73% in 2023 to 62% in 2024 as new rivals have started expanding their presence. To maintain leadership, Tata is making big bets on localization. The company has announced a $1.5 billion investment in a domestic battery gigafactory, which will begin production by 2026 and reach full scale by 2028. This move is expected to cut costs, reduce import dependence, and ensure a steady supply of EV batteries—a smart strategy as the competition intensifies.

On the other side, Maruti Suzuki, India’s largest carmaker, is finally gearing up for its EV debut. The company plans to launch six electric models by 2030, and one of the most anticipated among them is the Maruti Fronx EV. This compact crossover will be based on the Fronx platform and is expected to deliver a range of 350–400 km with multiple battery options. However, Maruti is facing challenges in scaling up EV production. Its first electric SUV, the e-Vitara, has already seen production cut drastically—from a planned 26,500 units to just 8,200 in April–September 2025—due to a global shortage of rare earth materials. Even so, Maruti’s strong brand trust and massive sales network could help it quickly make up lost ground once production stabilizes.

Meanwhile, Hyundai is preparing to bring its own compact electric SUV, the Hyundai Inster EV (codenamed HE1i), to India by late 2026. Built on the E-GMP platform, this model will come with two battery options—42 kWh offering around 300 km and 49 kWh delivering up to 355 km range (WLTP). Power outputs will vary between 97 hp and 115 hp, making it a strong contender in terms of performance. Where Hyundai really shines is in features: the Inster EV is expected to pack dual 10.25-inch digital displays, ADAS, a 360-degree camera, blind-spot monitoring, and automatic climate control. Hyundai is also targeting annual production of around 90,000 EVs in India, signaling its serious push into this segment.

The battle lines are clearly drawn. Tata Punch EV enjoys the first-mover advantage, a strong customer base, and a major localization push with its battery plant. Maruti Suzuki is slightly late to the party but will leverage its unmatched market reach and customer trust once its Fronx EV arrives around 2026–27. Hyundai, on the other hand, is banking on tech-rich, premium features and scalable production to attract buyers who want more than just affordability.

In the coming years, Indian buyers will have more choices than ever in the compact EV space. With Tata, Maruti, and Hyundai competing head-to-head, this rivalry promises not only better products but also competitive pricing and rapid improvements in EV infrastructure. For the consumer, the future looks electrifying.