World’s first CNG-powered motorcycle witnesses growing demand, registers retail sales of 4,109 units in August, its first full month of market availability, and 637 units in the first four days of September. Bajaj Auto, which is ramping up production for the Freedom 125, will be aiming for higher numbers in the festive season.
05 Sep 2024 | 12233 Views | By Ajit Dalvi
Two months after Bajaj Auto launched the world’s first CNG-powered motorcycle on July 5, 2024,the company has crossed retail sales of over 5,000 units. As per Vahan data (as of September 5, 7am), cumulative sales are 5,018 units comprising 276 units in the last two weeks of July, ...
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Two months after Bajaj Auto launched the world’s first CNG-powered motorcycle on July 5, 2024, the company has crossed retail sales of over 5,000 units. As per Vahan data (as of September 5, 7am), cumulative sales are 5,018 units comprising 276 units in the last two weeks of July, 4,109 units in August and 637 units in the first 4 days of September.
Sales in the first few weeks after launch were in three digits because of the new product’s soft launch in only two states – Maharashtra and Gujarat which have strong CNG filling infrastructure – but have picked up after August 15 when the company expanded the Freedom 125’s availability in 77 towns and cities across India and also Delhi and Kerala. This would include Tier 2 and Tier 3 towns where the CNG filling infrastructure is gradually growing.
Deliveries of the Freedom 125 to customers began from July 18, starting with the top variant, from showrooms in Maharashtra and Gujarat. A Pune-based customer was the first to get delivery, by which time Bajaj Auto had received over 30,000 enquiries from across India for the eco-friendly motorcycle.
The company is banking on the speedy expansion of the CNG filling infrastructure across the country, currently estimated to be around 7,000 stations and billed to more than double to over 13,000 stations over the next couple of years and around 17,000 by 2030. According to Rakesh Sharma, executive director of Bajaj Auto, CNG is available at 335 towns out of the 500 top towns in India and these 335 towns account for 70% of the addressable market.
Given the growing demand for the eco-friendly motorcycle, production of the Bajaj Freedom 125, which began with a capacity of 10,000 units in the first 2-3 months, is planned to be ramped up to 30,000-40,000 units by the end of FY2025, possibly even by January 2025.
Freedom 125 lowers operating costs by up to 50% when compared to similar ICE motorcycles, which translates into a wallet-friendly Rs 1 per kilometre.
Affordable, greener alternative to petrol-engined motorcycles
The ground-up-developed Freedom 125 is a motorcycle that is capable of running on both CNG and petrol and is pitched as an alternative to similar-category petrol-engined commuter motorcyles, which rely on being tanked up on expensive petrol priced at Rs 104.19 (as of September 3 in Mumbai). It is sold in three variants, starting with the NG04 Drum (Rs 95,000), NG04 Drum LED (Rs 105,000) and NG04 Disc LED (Rs 110,000, ex-showroom Delhi).
The Bajaj Freedom 125 is powered by a new, air-cooled 125cc, single-cylinder motor which develops 9.5 hp and 9.7 Nm of torque, mated to a five-speed gearbox. Bajaj Auto claims the bike has a top speed of 90.5kph while running on CNG and, when switched to petrol power, slightly higher at 93.4kph.
Bajaj Auto claims the Freedom 125 lowers operating costs by up to 50% when compared to similar ICE motorcycles, which translates into a very wallet-friendly Rs 1 per kilometre. The CNG tank provides a range of over 200 kilometres on just 2kg of CNG. Additionally, the bike’s 2-litre petrol tank acts as a range extender, offering over 130km of range in the event of the CNG tank emptying out.
This dual-fuel capability gives the rider a combined range of 330km. The Freedom 125, as per Autocar India tests, delivered mileage of 94km/kg in the city and 126km/kg on the highway. Meanwhile, the fuel efficiency when running on petrol was predictably a lot lower – 53.4kpl in the city and 62.37kpl on the highway. On the emissions front, compared to petrol-engined bikes, the Freedom 125 emits 26.7% less CO2, 85% lower NMHC’s (non-methane hydrocarbons) and 43% less NOx (nitrogen oxide).
High on safety, the Freedom 125 has successfully passed 11 rigorous safety tests, including impact tests, as well as a truck-run-over test.
Huge potential for Freedom 125 to be a volume-player
Bajaj Auto would also be looking to capitalise on demand for the Freedom 125 in the festive season with Ganesh Chaturthi on September 7, Onam on September 15, Dussehra on October 12 and November opening with the festival of lights – Diwali.
The potential for the Bajaj Freedom 125, which promises to be a game-changer with its innovative technology and offering a new paradigm for affordable two-wheeled motoring, is huge in India. In July 2024, the 100-125cc segment saw wholesales of 631,566 motorcycles or 74% of the total 850,489 bikes dispatched to dealers in the country. It is this fuel-sipping bike category that puts a value on low cost of ownership that Bajaj Auto and the Freedom 125 are targeting.
In a conference call following Bajaj Auto’s Q1 FY2025 results, executive director Rakesh Sharma had said: “Not only the proposition of 50% savings of the fuel bill is very impactful, Freedom 125 styling, dual fuel capability, the range, ergonomics of the long seat and the comfortable ride due to the linked mono-suspension have all been highly appreciated. We are targeting the mileage-conscious customer in the 100cc to 125cc segment. Of the approximately 1 million motorcycles sold per month in India, almost 75% are in this segment, the 100cc to 125cc segment and about 60% of the demand of these customers has access to a CNG pumping station. Hence, our addressable market is about 450,000 to 500,000 customers per month.”
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