In a groundbreaking move that has sent ripples through the Indian automotive industry, Bajaj Auto’s latest offering, the Freedom 125 CNG, has emerged as a game-changer in the two-wheeler segment.
This innovative motorcycle, which runs on compressed natural gas (CNG), has not only captured the imagination of consumers but has also set new benchmarks in terms of sales and market penetration.
Record-Breaking Sales
Recent data from VAHAN, as reported by Business Standard, reveals an astounding surge in the sales of the Bajaj Freedom 125 CNG.
The motorcycle registered over 8,310 units in October 2024, marking a staggering growth rate of 68% compared to September.
This figure represents the highest monthly sales since the bike’s launch in July 2024, with projections indicating that the numbers could touch close to 9,000 units by the end of October.
Rakesh Sharma, Executive Director of Bajaj Auto, shared insights into the company’s ambitious plans. “We’re targeting to cover 80% of the addressable market for Freedom 125 CNG bikes by next month,” Sharma stated.
He elaborated that the addressable market primarily consists of the 100-125cc segment, which accounts for a significant 75% of the two-wheeler industry in India.
Market Penetration and Future Projections
The Freedom 125 CNG has shown remarkable traction in several states. In September, it accounted for 1.3% of all two-wheelers registered in Delhi and 1.2% in Gujarat.
Nationally, it has secured a 0.6% market share, an impressive feat for a new category in both the Indian and global markets.
Analysts at Anand Rathi have projected substantial growth for Bajaj’s CNG volumes. They anticipate sales to reach 240,000 units in the fiscal year 2025, representing 6% of Bajaj’s domestic two-wheeler sales.
The forecast for FY2026 is even more optimistic, with expectations of over 700,000 CNG bikes sold, potentially capturing 21% of the company’s domestic sales.
The CNG Advantage
The Freedom 125 CNG has attracted consumers with its numerous advantages. Perhaps the most compelling is its cost-effectiveness – the fuel cost is reportedly half that of a petrol motorcycle.
Additionally, the bike comes equipped with a small petrol tank, effectively eliminating range anxiety associated with CNG vehicles.
The rapid expansion of CNG infrastructure across India has further bolstered the bike’s appeal.
With over 4,650 CNG stations spread across more than 365 cities, covering 70% of the two-wheeler market, accessibility is no longer a significant concern for potential buyers.
Production Ramp-Up and Market Strategy
Responding to the overwhelming demand, Bajaj Auto is gearing up to increase production significantly.
The company plans to ramp up wholesale dispatches to 30,000 units in the third quarter of the fiscal year, with aims to reach 40,000 units in the fourth quarter.
A key factor in the Freedom 125 CNG’s success has been its strategic pricing.
The recent introduction of a base model priced at Rs. 95,000, compared to the premium model at Rs. 1.05 lakh, has opened up the market to a broader consumer base.
Industry Impact and Competition
The success of the Bajaj Freedom 125 CNG has not gone unnoticed by competitors. TVS has announced its intention to enter the CNG two-wheeler segment, although analysts suggest it could take up to two years for rivals to develop comparable products due to the complexity involved.
Interestingly, while electric vehicles continue to gain traction in the Indian market, with companies like Ola Electric planning to launch electric motorcycles in early 2025, Bajaj Auto has chosen to focus on CNG technology.
This strategic decision appears to be paying off, with the Freedom 125 CNG carving out a significant niche in the market.
Looking Ahead – Bajaj Freedom 125 CNG
As the Indian automotive industry continues to evolve, with a growing emphasis on alternative fuel technologies, the Bajaj Freedom 125 CNG stands as a testament to innovation and market responsiveness.
Its success not only highlights the potential of CNG as a viable fuel option for two-wheelers but also underscores the changing preferences of Indian consumers towards more economical and environmentally friendly transportation options.
With ambitious sales targets, expanding market coverage, and a clear competitive advantage, the Bajaj Freedom 125 CNG is poised to play a pivotal role in shaping the future of India’s two-wheeler market.
As the country moves towards cleaner and more sustainable mobility solutions, this groundbreaking motorcycle may well be remembered as a catalyst that accelerated the transition to alternative fuel vehicles in the world’s largest two-wheeler market.