Our Terms & Conditions | Our Privacy Policy
Bajaj Freedom 125 CNG motorcycleNew Delhi: Bajaj Auto, which launched the Freedom 125 CNG motorcycle last year, is now focusing on increasing awareness about the fuel technology and its cost-saving benefits.
“Now that we have built the network, we want to build awareness centres. It is planned for the current quarter,” Dinesh Thapar, CFO, said during a recent media conference call.
According to him, there is already a good understanding of the product’s value and the savings it offers. The next step is to actively disseminate this information to potential buyers so that they consider the Freedom as their preferred motorcycle.
While sales personnel in dealerships will continue to spread the message to interested customers, Bajaj will spread further awareness by way of aggressive campaigning in regions where CNG demand is increasing. The idea is to drive customer engagement further beyond the showrooms especially in smaller regions and boost awareness of CNG and the benefits it offers.
Main challenge
Bajaj claims that the motorcycle lowers operating costs by 50% when compared to similar ICE-only motorcycles. However, the main challenge is the limited network of gas stations, which could hinder their widespread adoption.
Right now, the big markets for CNG are Maharashtra, Gujarat and Delhi even though the Centre is keen on expanding its reach rapidly across the country. The idea is to have cleaner fuel options in place beyond petrol and diesel.
Reports have also been doing the rounds that Freedom 125 sales have not picked up on expected lines since customers do not like the idea of sweating it out in long queues along with three-wheelers and cars. However, sources say this problem is being addressed by having exclusive CNG dispensing points for two-wheelers.
Bajaj is confident that sales will grow with an increase in word-of-mouth, as customers become aware of its low operating costs. “It is still a young product and will take time to attract bigger numbers,” say industry sources. According to them, a further boost can come if CNG two-wheelers like Freedom get a reprieve in the GST levy from 28% to 18% since they are also doing their bit with cleaner emissions.
Phased manner
Bajaj launched its CNG motorcycle in July 2024 at a starting price of INR 95,000 (ex-showroom). It was introduced in a phased manner starting with Maharashtra and Gujarat which have a stronger CNG filling network. Since then, Freedom is now more widely available across the country.
According to SIAM data, the company has been ramping up its despatches every consecutive month in anticipation of strong festive demand. However, over the last two months it has despatched only about 5,000 units of the model each month.
As per retail sales data on the VAHAN portal, Freedom 125 sales crossed the 40,000 mark in the first six months of launch. It may be noted that Bajaj slashed the basic version’s price by INR 10,000 within the first five months of its debut.
Interestingly, TVS Motor is also looking to invest in CNG two wheelers. At the recently concluded Bharat Mobility Expo 2025, the two-wheeler maker showcased a concept model of the Jupiter CNG scooter.
EV business marginally profitable
Bajaj Auto, which sells three-wheelers and Chetak scooters in its EV portfolio, said its cumulative business has turned marginally profitable during the October-December 2024 quarter.
According to Thapar, this was led by an improvement in unit economics for the Chetak e-scooters, because “the bleed has come off compared to where we were a year ago”. However, the electric two wheeler business is not yet profitable on a standalone basis. “In many ways, the rise of electric three-wheelers is creating a profit pool which is absorbing the losses of the Chetak portfolio,” he said.
Bajaj Auto’s EV and CNG business, collectively referred to as its ‘green energy portfolio,’ now contributes 45% to its overall business, an increase from 30% in Q3 FY24.
- Published On Jan 31, 2025 at 02:27 PM IST
Join the community of 2M+ industry professionals
Subscribe to our newsletter to get latest insights & analysis.
Download ETAuto App
- Get Realtime updates
- Save your favourite articles
Scan to download App
Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.
Aggregated From –
Comments are closed.