India (Commonwealth) _The first CNG motorbike in the world, the Bajaj Freedom 125, was just released by Bajaj Auto. Its running costs are about 50% lower than those of a comparable petrol-only vehicle, according to the manufacturer. Both gasoline and CNG may be stored in separate tanks on the Bajaj Freedom 125.
With a 124.58cc engine producing 9.7Nm of peak torque and 9.5PS of maximum power, the Bajaj Freedom 125 CNG bike can achieve impressive performance. A five-speed gearbox is connected to the engine. In the gasoline mode, Bajaj claims a mileage of 65 km/l and 102 km/kg. The whole range, then, is 334 kilometers when both the gasoline and CNG tanks are full.
Unlike CNG-powered automobiles, which begin in petrol mode and then transition to the CNG mode, the Bajaj Freedom 125 CNG bike starts in the CNG mode. If the riders’ CNG tank runs out, they can convert to The Bajaj Freedom 125 CNG has a telescopic front suspension and a link-monoshock system at the back, both of which are mounted on a trellis frame. Both the front and back wheels are 17-inch alloys with tubeless tires. The rear wheel is 16-inch alloy. A 130mm drum brake is located at the back, while a 240mm disc brake is located up front.
There are three varieties of the Bajaj Freedom 125: NG04 Drum, NG04 Drum LED, and NG04 Disc LED. The Bajaj Freedom 125 pricing (ex-showroom) for each model is listed below.
This Bajaj Freedom 125 CNG bike is now available in Gujarat and Maharashtra. It will begin a staggered rollout in other regions of the nation the following quarter.
The world’s first motorbike with CNG integration, the “Freedom 125,” was introduced by Bajaj Auto Ltd. and retails for between Rs. 95,000 and Rs. 1,10,000 ex-showroom. This is the first CNG motorbike in the world, and its goal is to upend the 125cc commuter market. It is stated that the bi-fuel car is among the most cost-effective choices available in the market.Because of its favorable TCO, the cost is appealing and competitive in the up to 125cc category. With a 2 kilogram CNG kit and a 2 ltr gasoline tank, the Freedom 125 model boasts 102 km/kg of CNG and 65 km/ltr of gasoline fuel. It asserts that it can go 330 kilometers in total on a single fill. Therefore, JM Financial stated in its note that the fuel cost for CNG is anticipated to be just Rs 1.07 per kilometer.
Because of its favorable TCO, the bike is reasonably priced and aims for the 100cc and 125cc segments, according to our estimates. The model will be exported, according to the business. The model is probably going to be initially margin dilutive given the launch pricing. It stated, “With a target price of Rs 10,850 and a ‘buy’ rating on the stock, backed by Bajaj Auto’s successful track record of product intervention.”
266,000 units of 125cc motorcycles are sold each month, according to Elara Capital’s IPO letter. “We believe the 125cc segment will be the key target market for the Bajaj CNG bike. “Although there are CNG stations in 60% of India’s 700 districts, as demonstrated in PV and 3W, there are lengthy lines when fuelling.”
This will be inconvenient for a two-wheeler consumer, therefore we need to keep an eye on how it may be resolved. We estimate that if the problem with filling stations is resolved, it may reach 10,000 units each month and even more. Based on 26 times, we repeat our accumulation strategy with a higher target price of Rs 10,717 from Rs 10,050, according to Elara.
According to InCred Equities, the cleverly built CNG bike necessitates a shift in consumer behavior. “The first volume plan matches our projection. We’ll monitor consumer reaction and any necessary behavioral adjustments to turn it into a game-changing product in the 2W market. We will keep our ‘hold’ recommendation on the stock with a Rs 9,205 target price.
With a market valuation of more than Rs 2.65 lakh crore, shares of Bajaj Auto Ltd were slightly down at Rs 9,520 on Tuesday. On Monday, the stock closed at Rs 9,527.80. Since August 2023, when the stock hit a 52-week low of Rs 4,544, the price has increased by more than 11%.
