“We want to return the favour to Hero and Honda after 30 years,” Rajiv Bajaj, Managing Director of Bajaj Auto, said during the launch of Freedom 125—the world’s first motorcycle to run on compressed natural gas (CNG). This could mark a defining moment in the domestic two-wheeler industry as Bajaj Auto looks to reclaim leadership in the entry-level two-wheeler segment.
Right up until the early 1990s, Bajaj Auto dominated the domestic market with its iconic Chetak scooters. But that changed when Hero Honda introduced the Splendor 100cc motorcycle in 1993. By 1997-98, Hero Honda overtook Bajaj Auto, mirroring a paradigm shift in the industry, which went from being 70% scooters to 70% motorcycles.
Bajaj did react with the Pulsar in 2001—which went on to become the highest-selling model in the above-125cc segment—but it could not reclaim leadership in the entry-level segment. Currently, the 100cc segment is the turf of Hero MotoCorp, whereas Honda Motorcycle & Scooter India dominates in 125cc.
With the Freedom 125, priced at Rs 1.1 lakh, Bajaj is trying to grab back a slice of the entry-level segment with a technology that can potentially become a game changer. “The message from Freedom 30 years later is Tiger Zinda Hai (Tiger is alive),” Bajaj said.
Bajaj Auto claims that, unlike its ICE counterparts, the Freedom 125 reduces fuel expenses by 50%. The 2-kg CNG cylinder and 2-litre petrol tank provide a combined range of 330 km. Moreover, the cost per km is only Rs 1 for CNG, while it is `2.25 for petrol. According to Rakesh Sharma, Executive Director at Bajaj Auto, the hybrid CNG fuel tank will help customers save up to Rs 1,500 per month.
Analysts observe that the motorcycle will find a niche amongst consumers who have easy access to CNG pumps. “It will especially appeal to those who are highly conscious of fuel costs and are willing to invest the time in filling up CNG, which typically costs less than petrol,” says Anurag Singh, MD of consulting firm Primus Partners.
Bajaj Auto is hoping to recreate the stellar gains it has seen in the three-wheeler CNG segment, where it commands a 70% market share.
The company will roll out the first 1,000 units of Freedom 125 beginning next quarter in Maharashtra and Gujarat.
A major hurdle would be the lack of CNG infrastructure and a single CNG pump in gas stations. Bajaj Auto says that it has partnered with oil marketing companies to set up CNG pumps.
@OrielAstha11