With the Freedom 125, Bajaj Auto's venture into CNG (compressed natural gas) motorbikes is paying off. According to VAHAN data, the company has registered more than 8,310 Freedom 125 units in October so far, which represents a growth rate of more than 68% over the entire month of September.
By the end of the month, it is probably going to reach nearly 9,000, which is its highest since it was introduced in July of this year.
With a robust demand pipeline, the business intends to increase wholesale deliveries to 30,000 units in the third quarter (Q3) and 40,000 units in Q4, particularly given the recent delivery of the base model (Rs 95,000) in contrast to its premium model (Rs 1.05 lakh), which it introduced to the market.
The amount of traction it has gained in certain places is intriguing. In September, the CNG bike made up 1.3% of all two-wheelers registered in Delhi and 1.2% in Gujarat. On average, it received 0.6% of all two-wheelers nationwide, making it a new category in both India and the world. Madhya Pradesh and Haryana are among its top five markets, along with Delhi and Maharashtra.
Anand Rathi analysts predict that Bajaj will have large CNG shipments. They anticipate that these sales will reach 240,000 in FY25, making up 6% of all domestic two-wheeler sales. With the company selling over 700,000 CNG bikes, this might increase to 21% in FY26.
In a previous interview with Business Standard, Rakesh Sharma, vice-president of Bajaj Auto, noted that the market share of CNG would be similar to that of electric vehicles. Therefore, if 5–7% of motorcycles become electric, there is no reason why CNG motorcycles shouldn't have a comparable percentage.
Customers have been drawn to the product because of its various benefits. Its fuel costs half as much as a petrol motorcycle, and range concerns are allayed by the fact that it also has a small gas tank in case the CNG runs out.
The rapid expansion of CNG filling stations throughout the nation has served as justification for the action. More than 365 cities have more than 4,650 CNG stations. They account for 70% of the market for two-wheelers.
Bajaj Auto's success has encouraged competitors to follow suit. According to TVS, it will join the segment. However, experts predict that it will take at least two years for competitors to develop a product because of the product's intricacy. Bajaj Auto has chosen to stay out of the electric industry and keep a close eye on it, while Ola Electric plans to introduce its electric motorcycles in the first quarter of CY2025 at a far cheaper base price of 79,999.
