Bajaj Auto Strikes ‘Tiger Zinda Hai’ Note as First CNG Bike Hits the Road

Historical Context: Bajaj Auto, a prominent player in the Indian automotive industry, has a rich history of innovation and market leadership. In the late 1990s, the company faced significant competition from Hero Honda, which revolutionized the market with its fuel-efficient motorcycles. Bajaj Auto’s journey from being a market leader in scooters to facing stiff competition in motorcycles is a testament to its resilience and adaptability. The launch of India’s first CNG three-wheeler 25 years ago marked a significant milestone in the company’s history, showcasing its commitment to sustainable and economical transportation solutions.

Current News: Bajaj Auto has unveiled the world’s first CNG motorcycle, the Freedom 125, available in three variants and seven colors, with ex-showroom prices ranging from Rs 95,000 to Rs 1.1 lakh. This launch comes at a time when India has significantly expanded its CNG infrastructure, boasting 6,000 CNG fuel stations across 335 cities.

Key Features and Benefits:

• Gamechanger: The Freedom 125 CNG bike competes with conventional 125 cc petrol bikes, offering significant cost savings and environmental benefits.
• Cost Savings: The bike promises 50% cost savings on fuel compared to petrol motorcycles, with an annual saving of around Rs 15,000 on fuel bills.
• Range: The CNG tank provides a range of over 200 km on 2 kg of CNG, while the 2-litre petrol tank offers an additional 130 km, culminating in a total range of 330 km.
• Environmental Impact: The bike reduces CO2 emissions by 26.7%, non-methane hydrocarbons by 85%, and nitrogen oxides by 43% compared to petrol motorcycles.
• Tax Advocacy: Bajaj Auto advocates for reducing the tax rate on cleaner fuel vehicles from the current 28% to around 12%, noting that EVs in India are taxed at 5%.

Market Strategy:

• Production and Sales: Bajaj Auto plans to produce 10,000 units of the Freedom 125 monthly, initially retailing in Gujarat and Maharashtra, with plans to scale up to 40,000 units by the financial year’s end.
• Export Markets: The company has identified six export markets for the bike, including Egypt, Tanzania, Bangladesh, Indonesia, Columbia, and Peru.
• Segment Penetration: Bajaj Auto aims to capture a significant share of the entry-level bike segment, which accounts for nearly 650,000 units sold monthly in India.

Government Support: Union Minister of Road Transport and Highways, Nitin Gadkari, expressed his mission to reduce air pollution and fossil fuel imports. He highlighted ongoing projects for making CNG from rice straw (bio-CNG) and suggested Bajaj Auto consider a bike running on 100% bioethanol.

Historical Reflection: Reflecting on the 1990s, Rajiv Bajaj recalled how rising fuel prices led to a shift from scooters to motorcycles, with the introduction of the four-stroke Hero Honda motorcycle transforming the market. He suggested that the launch of the Freedom 125 could be a similar milestone moment for the two-wheeler industry.

Summary in Bullet Points:

• Launch: Bajaj Auto unveils the world’s first CNG motorcycle, the Freedom 125.
• Price Range: Rs 95,000 to Rs 1.1 lakh ex-showroom in Delhi.
• Cost Savings: Promises 50% fuel cost savings compared to petrol motorcycles.
• Range: Total range of 330 km with full petrol and CNG tank.
• Environmental Impact: Reduces CO2 emissions by 26.7%, non-methane hydrocarbons by 85%, and nitrogen oxides by 43%.
• Production Plans: Initial production of 10,000 units monthly, scaling up to 40,000 units.
• Export Markets: Plans to export to Egypt, Tanzania, Bangladesh, Indonesia, Columbia, and Peru.
• Government Support: Union Minister Nitin Gadkari supports reducing air pollution and fossil fuel imports.
• Historical Context: Reflects on the shift from scooters to motorcycles in the 1990s due to rising fuel prices.
• Market Strategy: Aims to capture a significant share of the entry-level bike segment in India.