Bajaj Auto has launched the world’s first CNG-powered motorcycle, the Freedom 125, aiming to shake up the market. Rajiv Bajaj, Managing Director of Bajaj Auto, hopes this bike will transform the two-wheeler market, much like Hero Honda’s fuel-efficient motorcycles did 25 years ago.
The Freedom 125 is priced between Rs 95,000 and Rs 110,000 (ex-showroom, Delhi). It promises to cut operating costs by up to 50% compared to petrol motorcycles and features a dual-fuel system with a 2-liter petrol tank, giving it a range of 330 km.
Rajiv Bajaj said, “Hero Honda revolutionized the market with motorcycles. We want to return that favor.” He highlighted the bike’s potential in the entry-level motorcycle market, which sells around 650,000 units annually.
Bajaj Auto is targeting the 100-125cc segment, currently dominated by Hero MotoCorp. With only a 25%-26% share in the 125cc segment and less than 15% in the 100-110cc segment, Bajaj aims to challenge Hero’s stronghold with this new CNG bike.
Rakesh Sharma, Executive Director of Bajaj Auto, noted the success of their CNG three-wheelers, which hold an 88% market share. This, along with high fuel prices and a wide CNG network, motivated Bajaj to develop the Freedom 125 over the past 2.5 years. Bajaj has set up an initial capacity of 10,000 units per month in Aurangabad, with plans to increase it to 40,000-50,000 units by the end of FY25.
Initially, Bajaj will focus on the domestic market before exporting to countries like Egypt, Tanzania, Colombia, Peru, Bangladesh, and Indonesia. At the launch event, Nitin Gadkari, Minister of Road Transport and Highways, praised the bike and suggested adding a 2-liter ethanol tank instead of petrol.
Rajiv Bajaj also called for a reduction in GST on two-wheelers, arguing for a 12% GST instead of the current 28%. He emphasized the significant investment Bajaj has made in developing the CNG motorcycle and discouraged competitors from entering this market.
The Freedom 125 aims to offer an eco-friendly and cost-effective solution for riders, setting a new standard in the two-wheeler industry.
