Tata Motors Ramps Up Capacity as Sierra Deliveries Near and Punch Facelift Debuts

Tata Motors is stepping up passenger vehicle production as it prepares for the first wave of Sierra deliveries later this week and begins the rollout of its updated Punch lineup, which now includes a segment-first iCNG AMT option.

The automaker on January 13, 2026 announced the Punch facelift with an introductory starting price of ₹5.59 lakh (ex-showroom). The refreshed model brings design and feature upgrades, and introduces a CNG automatic variant aimed at buyers looking for a blend of convenience and running-cost efficiency. 

Capacity push: Tata targets 1-million run rate

With India’s passenger vehicle market continuing to expand, Tata Motors Passenger Vehicles MD Shailesh Chandra said the company is working to scale output from its current installed capacity of about 900,000 units a year, with the ability to move closer to a 1-million-unit annual capacity through process improvements and line optimisation.

The automaker said the Sanand 2 facility (the former Ford plant) is playing a central role in addressing short-term capacity constraints, including an additional 100,000-unit headroom that can be activated through brownfield expansion and debottlenecking efforts.

Sierra ramp-up: deliveries scheduled from Jan 15

Tata Motors is also ramping up production for the revived Sierra, which has attracted strong demand after bookings opened.

Auto media reports said the Sierra crossed 70,000 bookings shortly after launch, with deliveries expected to begin on January 15, 2026.

Clean-fuel mix rises as CNG and EV volumes grow

Tata Motors has been positioning itself around a multi-powertrain strategy, and management has highlighted rising consumer adoption of cleaner alternatives.

The company has said EV and CNG variants together now account for about 43% of its passenger vehicle volumes, supported by wider availability of CNG variants and continued EV demand.

Tata Motors also marked a major milestone in late December 2025, announcing cumulative EV sales crossing 250,000 units in India.

With the addition of the Punch iCNG AMT and updated EV variants, the company is expected to push clean-fuel penetration higher in 2026, depending on customer response and supply ramp-up.

2025 performance: record growth continues

Tata Motors said it delivered another strong year in 2025, posting record growth for the fifth consecutive year, with passenger vehicle sales of 587,218 units.

The Punch remained among the company’s biggest volume drivers, although industry watchers noted demand normalised in 2025 as customers waited for the facelift launch.

Summary

Tata Motors is expanding passenger vehicle production through line optimisation and brownfield headroom — including at its Sanand 2 facility — as it prepares for Sierra deliveries from January 15 and begins deliveries of the Punch facelift launched on January 13 starting at ₹5.59 lakh. The refreshed Punch introduces a segment-first iCNG AMT variant, while Tata continues to benefit from growing clean-fuel adoption, with EV and CNG models contributing roughly 43% of PV sales.

Frequently asked questions (FAQs) 

Q1: When does the new Tata Punch go on sale?

The Punch facelift was launched on January 13, 2026. Bookings are open, and deliveries are expected to begin in phases.

Q2: What is new in the Punch facelift?

The facelift adds major feature updates and includes a segment-first iCNG AMT, along with updated engine and tech options depending on variant.

Q3: When will Tata Sierra deliveries begin?

Auto industry reports indicate deliveries are scheduled to begin on January 15, 2026.

Q4: How is Tata Motors increasing capacity?

The company is using debottlenecking, line optimisation and brownfield expansion, including tapping additional capacity at the Sanand 2 plant.

Q5: What is Tata Motors’ EV sales milestone?

Tata Motors announced that it crossed 250,000 cumulative EV sales in late December 2025.