Bajaj Auto Ltd, which launched the world's first ground-up CNG-powered motorcycle earlier this month, intends to expand its CNG portfolio under the Freedom brand with different displacements.
- Bajaj has a 15 percent market share in 100-125cc segment
- Bajaj currently has 4,200 bookings for the Freedom
- Most bookings are from Maharashtra and Gujarat
Bajaj Freedom future models, price, delivery details
"Freedom is a portfolio brand, not just a product brand," Bajaj Auto executive director Rakesh Sharma told investors during a call. The three variants of the Freedom 125 can be adapted to create higher and lower-powered CNG models in the future.
Bajaj Auto is a strong player in the 150cc+ segments and has been trying to disrupt the entry-level and commuter segments that have been ruled by Hero MotoCorp. With the Freedom, the Chakan-based company looks to cash in on mileage-conscious consumers with an affordable solution.
The company sees good headroom for new business in the 100-125cc segment as the automaker currently has only about 15 percent market share in that segment. However, the management did not give a timeline on when we can expect another CNG motorcycle on the Freedom platform.
"This is a platform that is extendable in both directions. But exactly when we are going to introduce it, we will see. It is not ground-up work that will be required, it is a platform. And very quickly we can respond if there is a requirement emerging in the market," Sharma said.
Bajaj Auto launched the Freedom 125 with prices ranging between Rs 95,000 and Rs 1.10 lakh (ex-showroom, Delhi), and has started deliveries of this bike. It has received over 4,200 bookings for the Freedom, of which customers from Maharashtra and Gujarat account for 80-90 percent. The management noted that the model has an addressable market of up to 5 lakh units per month.
"Of about 1 million motorcycles sold per month in India, almost 75 percent are in the 100-125 cc segment. And about 60 percent of these customers have access to CNG dispensing stations. Hence, the addressable market is around 4,50,000-5,00,000 per month. We are targeting all these customers with the proposition of fuel economy, style and comfort," Sharma said.
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Currently, Bajaj Auto can produce 20,000 units of the Freedom 125 in a month and plans to ramp it up to 40,000 units per month by the last quarter of this financial year.
Meanwhile, the bike's success will primarily depend on the availability of CNG across the states. "A key factor for the success of [the] Freedom 125 will be the ease of CNG availability. We are hoping that the CNG distribution company will also take this opportunity to expand its business and facilitate the migration from petrol to CNG. This will help pump [up] the rate of adoption," he added.
There are around 7,000 CNG dispensing stations in India across all major states with Gujarat, Uttar Pradesh and Maharashtra having the most outlets. The government has set a target of increasing the number of CNG stations to around 17,500 by the end of the decade.
Rishaad Mody
Azaman Chothia
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