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The government's recent decision to reduce GST on smaller cars is being celebrated by both car manufacturers and buyers, ahead of the upcoming festive season. However, looking at consumer trends in the automotive sector, instead of small car sales going up, it might be the compact SUV segment that sees higher sales in light of the GST price drops.
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If you are in the market for a new car and wondering if a compact SUV would now fit your small car budget, then here are two popular options that will become significantly cheaper after September 22. The base model variants of the top-selling Tata Motors Punch and Hyundai Exter compact SUVs will soon compete against smaller hatchback
options as they are bound to cost under Rs 6 lakh in ex-showroom value. Here is a quick comparison to see which base variant offers the most value to customers.
1. Punch vs Exter - Base Variant Engine and Performance:
⦁ The Tata Punch Pure variant is powered by the 1.2-litre Revotron, 3-cylinder, petrol engine that also does duty in several other models from the carmaker. It produces 86.5 hp and 115 Nm of torque. The Punch Pure variant offers a petrol-only option and also a petrol+CNG option at a higher ex-showroom cost. The petrol version offers a claimed fuel efficacy of 18.82 kmpl.
⦁ The Hyundai Exter's EX variant is powered by the brand's trusty 1.2-litre, 4-cylinder, Kappa petrol engine. The carmaker also added the CNG option to the base EX variant in April 2025. The Kappa engine produces a lower 81.8 hp and 113.8 Nm of torque when compared to its Tata rival.
2. Feature Comparison Between Tata Punch and Hyundai Exter:
⦁ The Punch Pure variant offers several practical features for customers, including rear parking sensors, central locking, front power windows, LED indicators and a 4-inch digital LCD instrument cluster.
⦁ The Exter EX variant also offers a similar amount of equipment, such as rear parking sensors, central locking, speed-sensing auto-lock, seat belt pretensioners, front power windows and a digital TFT instrument cluster.
3. Safety Comparison Of Punch Pure And Exter EX Variant:
⦁ While the Tata Punch is considered to be a champion in safety after it got a 5-star rating in Global NCAP, back in 2021. When compared to the Hyundai, it does leave a little to be desired in terms of equipment. The Pure variant offers dual airbags on the front, an electronic stability program and more.
⦁ On the other hand, the Hyundai Exter fails to offer any standardised crash test results to its customers. Bharat NCAP test results for the Exter are yet to be announced. However, the Exter does offer 6 airbags and 26 safety features as standard. These include ABS, EBD, ESS and more.
Based on new GST reform estimates from both brands, the Tata Punch will see a price drop of up to Rs 85,000 and the Hyundai Exter will see a price drop of up to Rs 89,209, presumably for the top-end variants. This brings the effective cost savings for both compact SUVs very close. However, the GST price reductions will certainly bring the base variants of the Punch and Exter well under the Rs 6 lakh mark in ex-showroom value.
While the Punch offers robust looks and a proven crash test rating of 5 stars from Global NCAP, the Hyundai Exter offers a tried and tested engine, extensive safety features as standard and perceivably better resale value.
Keep reading Times Now Auto for more in-depth comparisons of your favourite SUV models.
