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“There’s no reason not to look at a Punch diesel”: Tata product head

Having finally brought a turbo-petrol to the Punch, a diesel isn’t out of the question if customers demand it.
3 min read22 Jan '26
Gavin D'SouzaGavin D'Souza
5K+ views
2026 Tata Punch diesel engine inset

The Tata Punch finally has an engine befitting its name in the form of the 120hp, 1.2-litre turbo-petrol unit from the Nexon. However, Tata Motors is keeping the door open for other powertrains in the Punch sub-compact SUV, including the possibility of a diesel engine or even a turbo-petrol DCT in the future.

Speaking to Autocar India, Mohan Savarkar, chief product officer, Tata Motors Passenger Vehicles, said that while the Punch’s recently introduced turbo-petrol engine was the right immediate direction for the model, future powertrain updates aren’t out of the question and will be guided by consumer demand and market feedback.

  1. Tata Punch powertrains updated as per customer demand, says Savarkar
  2. If there is feedback for a diesel Punch, Tata will look into it

Tata Punch diesel on the cards if there is demand

Tata is the only carmaker to offer a diesel hatchback in India.

“If you see how the Punch has evolved, we started off with a simple car with a single powertrain with the AMT option, and then we added CNG,” Savarkar said. “We have always gone for a multi-powertrain approach, so after CNG, we added the EV, and now the next step, of course, had to be a very strong turbo offering.”

“We’re always in touch with our consumer base and want to provide what customers are looking for,” Savarkar said, highlighting how Tata is constantly updating its products to meet changing customer demand. Crucially, he does not rule out the idea of a diesel-powered Punch altogether. “If we do get feedback that a diesel engine would be nice to have, there’s no reason for us not to look at it,” he said.

With the introduction of BS6 Phase 2 (RDE norms) in 2023, most manufacturers have withdrawn diesel engines from smaller cars due to cost and complexity. Tata Motors, however, is currently the only carmaker that is still offering a diesel engine in a hatchback – the Altroz, while the rest of its SUV range – the Nexon, Curvv, Sierra, Harrier and Safari – benefits from a diesel engine option too.

Opinion: But should the Tata Punch have a diesel?

Built on the same ALFA architecture as the Tata Altroz, there’s no doubt that the Punch platform can accommodate Tata’s 1.5-litre, four-cylinder diesel engine. However, it’s not as simple as just doing an engine swap, as the car has to then be extensively calibrated with the new engine, not to mention homologated and certified as well. This all comes at an enormous cost, and there has to be sufficient demand to justify it. 

SUVs and diesel were once inexorably linked together in India, but with rising costs, new regulations and policy uncertainty, demand has waned. This impacts smaller cars considerably more as the rising price of the technology is more obviously apparent here. The waning demand has seen sales tip further towards petrol – and now CNG – in midsize and smaller SUVs. In fact, the Punch’s big brother, the Nexon, has seen its diesel sales share drop to below 16 percent in favour of petrol and CNG, so in a sub-compact SUV like the Punch, is there any demand at all?

It’s a gamble, but one that might be worth taking, as, like with the turbo-petrol, it could be a differentiator that sets the Punch apart from its only competitor – the Hyundai Exter. After all, Altroz diesel sales account for only around eight percent, yet it soldiered on after the facelift. Tata is determined to point out that the Punch is a ‘true’ SUV and more than just a cladded-up hatchback. “India is a country under construction always; the roads are not necessarily the best, even in cities, and you have to make sure that whichever vehicle you are in can tackle all of that,” says Savarkar. “So this car was made with all of this in mind.” With the addition of a diesel engine, that SUV positioning would only grow stronger.

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