Has the big bet on the Freedom CNG paid off? Bajaj ED Rakesh Sharma answers

Hindustan Times

a day ago

The Bajaj Freedom 125 CNG promises up to 50 per cent fuel savings with its bi-fuel technology (petrol + CNG), a world first Check Offers
Bajaj Auto made a bold move with the launch of the Freedom 125 last year, the world's first CNG-powered motorcycle. The bike promises significant savings over a conventional 125 cc commuter, without compromising on performance, comfort, and safety. It not only arrived with big promises but at a competitive price point. We even noted in our test ride last year that the bike was fairly well-equipped for its purpose, grabbing the right attention wherever it went. As the Bajaj Freedom 125 CNG celebrates its first anniversary since launch, HT Auto caught up with Rakesh Sharma, Executive Director - Bajaj Auto, to understand more about the Freedom's impact on volumes and the way forward for the CNG two-wheeler segment at large.
HT Auto: What has been the Freedom's impact on Bajaj Auto?
RS: The Freedom has established Bajaj Auto as an innovator and demonstrated our commitment to green energy. Today, our electric portfolio is 25 per cent of our domestic revenue, and if we add CNG - both three-wheelers and two-wheelers - our greener fuel portfolio is upwards of 40 per cent of our domestic revenues. And I struggle to identify any other company which will have this kind of portfolio.
Also Read : Bajaj Freedom 125 becomes more affordable by ₹ 5, The Freedom 125 CNG uses clever packaging to accommodate the CNG tank under the seat, along with a small petrol tank, which powers the newly developed 125 cc engine that can run on both fuel types
It is very much in line with the quest at Bajaj to address and align with the environmental concerns, the government infrastructure, and the way society is. The Chetak is the electric part in two-wheelers, Gogo in electric three-wheelers, RE in CNG three-wheelers, and now Freedom in two-wheelers when it comes to the green portfolio at Bajaj Auto. HT Auto: Launching the Freedom was a bold move. What kind of numbers is the Freedom doing for you? Are sales justified given the expectations?
RS: We won't call it a bold step, but a highly innovative step. We have been pioneers in CNG in small engine technology since 2001 when we launched CNG three-wheelers. There are over a million CNG three-wheelers, which are small-engine CNG-powered vehicles.
But to make the engine even smaller including the fuel tank, and fit it into the frame of a two-wheeler, was a whole lot of innovation. Our sales are around 3,000-4,000 units per month, depending on the market conditions. We sell about 150,000-170,000 two-wheelers (domestic) every month, and the Freedom contributes about 2-3 per cent. Bajaj is averaging about 3,000-4,000 units per month of the Freedom CNG. The bike has largely sold in markets where CNG is available, restricting its reach pan India HT Auto: We saw an overwhelming demand when the Freedom 125 came out last year, pushing you to rapidly increase availability. How many markets are you addressing now, and what is the status of exports?
RS: We are in all the markets where there is CNG availability. This is determined by the coverage of CNG pumps across India. There are about 374 towns that have a CNG network in some capacity. It may be very dense or very light but there is a CNG pump. We have used the Bajaj distribution network of over 4,000 touchpoints to distribute the Freedom in these towns.
We are yet to begin exports. We are trialling a few markets. The nozzles, fitments, and pump systems overseas need to be aligned with that built into the vehicle. There is also the gas pressure, quality of CNG, and other technical systems that need to be worked out. Perhaps in the next six months or so, we will commence exports in one or two markets.
Also Read : We tested the real-world fuel efficiency on the Bajaj Freedom CNG HT Auto: Have you identified the international markets so far?
RS: There are Argentina, and Colombia in Latin America, and Nigeria, Tanzania, and Egypt in Africa. We will look at Bangladesh at some point. HT Auto: Tell us about any different use cases for the Freedom CNG that you may have identified. What's the customer feedback like?
RS: Our obvious use case is people riding long distances. There are also commuters riding inter-city or inter-town who are riding over long distances. If you are riding 60 to 100 km a day, the savings are almost 50 per cent of the fuel consumption. This also means long distances require a wider coverage area, and there, the intensity of the CNG network becomes a factor for them to consider.
For instance, Bihar has a whole lot of CNG pumps but they are very widely dispersed. This causes 'availability anxiety," similar to range anxiety on an EV. But there are few places like Delhi, where the number of CNG pumps is widespread, almost rivalling petrol pumps. However, locations and familiarity with the people remain a challenge. HT Auto: What's the plan when it comes to expanding the Freedom family?
RS: We have three variants in the Freedom 125 and our first effort will be to keep driving penetration and adoption in this class. The 125 cc class gives an ideal combination of power, speed, and mileage. And we want to stay with it, though we have done our development work to expand our portfolio with at least two more displacement classes. But we are hanging on to that right now because our first objective is to reach a reasonable level of penetration with the Freedom 125.
The Freedom platform can be extended to 100 cc and 150 cc, based on our understanding, wherever the use case is more prevalent. We chose the 125 cc space because intercity commuters, long-distance riders, and delivery people tend to favour this class. We are open to additions on both sides. Also Watch: Bajaj Freedom 125 CNG bike review: Can it trigger a revolution in two-wheelers? HT Auto: Your competitor down south recently showcased a CNG-powered scooter (TVS Jupiter CNG) as a concept. Your thoughts on the same?
RS: We are very happy that more people are coming. In fact, if you see in cars, all mass players have a CNG option, which is most favoured by taxis. This leads to more players coming in and more Original Equipment Manufacturers (OEMs), good OEs coming into the arena, and popularising the fuel option in two-wheelers. I say the more the merrier, and it will strengthen the case for the reduction of GST on CNG two-wheelers. There is a consideration right now in the government to reduce the [GST on ] CNG-powered two-wheelers, something which is being discussed. And more OEs joining will benefit and strengthen this argument. HT Auto: Will CNG two-wheelers eat into electrics or do you see both co-existing easily?
RS: We think there's a nice use case for CNG two-wheelers. The product adoption has been fantastic. The echo we are getting from customers is exactly what it was designed for. It gives the right kind of mileage, and people are comfortable with the bi-fuel technology that can be changed with the flip of a switch. The long seat and robust suspension are being liked. The product has acceptance and is being driven by pride. It is a fertile ground to build the brand. The TVS Jupiter 125 CNG was showcased at the Auto Expo 2025 and could arrive later this year, promising a combined range of 226 km
The ecosystem is maturing with respect to the widespread CNG network, lighter pressure, and underfilling of tanks at pumps, among other challenges. There is a greenfield available to the Freedom, almost unchallenged currently. Both from an emotional and quantified point of view, the possibilities are very good.
In three-wheelers, our market share is 75 per cent. You'll find our three-wheelers running on diesel, petrol, CNG, LPG, electric, and ethanol. All these fuel systems are necessary are serve different use cases. So, we are able to serve customers more effectively with a wider portfolio. HT Auto: We've not seen any incidents with the Freedom CNG, which is a big win for you. How have you been able to contain the same so well?
RS: We've had CNG three-wheelers running in nearly 20 countries for over 20 years, and had no problems. We understand there is a perception of safety because there is a tank. This is another thing that needs to be addressed for the adoption to speed up. In a car, the tank is kept at the back but in a two-wheeler, it is right under you. This is largely a perception issue and there have been no cases. People have to get used to the idea. This takes time and requires a good track record. Bajaj is betting on a rising CNG network of filling stations to fuel the demand for the Freedom 125, along with more competition creating a larger ecosystem for CNG two-wheelers HT Auto: What more can CNG distributors do to accommodate two-wheelers better?
RS: We are very keen, and the CNG distribution companies are happy to promote CNG as a green and safe fuel. It's in the interest of the distribution companies to develop one more use case, which will help recover their investment. The number of two-wheelers isn't as high yet and they are currently getting VIP treatment. They bring it to the front of the queue and it takes only 2 minutes to fill up. People don't mind since it takes 2-3 minutes to fill. Once it penetrates, we will have to see how the queues are managed.
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First Published Date: 05 Jul 2025, 16:36 PM IST