After launch of Bajaj Freedom 125, TVS may roll out its own CNG bike

After Bajaj Auto recently launched the world's first CNG motorcycle, the Bajaj Freedom 125, more players are betting big on alternative fuels, with industry majors like TVS Motor keen on CNG itself.

The CNG fuel option in the commuter segment offers a reduced fuel bill for the consumer. As Bajaj has claimed, the operating cost of Freedom 125 is 50 per cent less compared to a conventional petrol-only bike.

“All the technology options (CNG, EV, multi-fuels, etc.) are very exciting, and we are interested," said a TVS Motor spokesperson.

However, the official said that as announced by the company this year, the plan is to launch another E2W, an ICE (internal combustion engine) vehicle and an E3W. "We are working towards that. We have already launched several variants of the TVS iQube this year. At the core of any choice that we make on the technology is whether it will make for happy and proud TVS owners,” the spokesperson said.

On the other hand, Honda Motorcycle and Scooter India (HMSI) too is betting big on alternative fuels. Honda India has showcased its flex-fuel-powered motorcycle developed specially for the Indian market during the Bharat Mobility Expo. The bike allows ethanol blending of up to 85 per cent.

Speaking to Business Standard, Yogesh Mathur, director, sales and marketing, HMSI, said that they too are developing an alternative fuel strategy. Refusing to divulge more details, Mathur said they are working on EVs and flex-fuel options. “We will share details later,” he said.

Bajaj’s Freedom 125, which took around two-and-a-half years to develop, offers 50 per cent cost savings by significantly reducing fuel expenses as compared to petrol-run motorcycles. Its CNG tank provides a range of over 200 km on 2 kg CNG, and additionally the 2-litre petrol tank provides a range of 130 km, resulting in an overall range of 330 km for a full-tank.

The company has claimed that the consumer saves around Rs 15,000 per year on fuel bills (and roughly recovers his money spent on buying the CNG bike over its petrol counterpart).

Bajaj Auto is also in talks with oil marketing companies to not only expand the CNG station network, but also have dedicated two-wheeler segments within the fuel stations for consumer ease. Two-wheeler majors are focussing on cleaner fuel technologies.

Freedom 125, for example, reduces CO2 emissions by 26.7 per cent compared to petrol, and 85 per cent lesser non-methane hydrocarbons and 43 per cent lesser nitrogen oxides.

Bajaj thus batted for reduction in rate of taxation on cleaner-fuel vehicles from the current 28 per cent to 12 per cent, or so. EVs in India get taxed at 5 per cent.

Around 900,000 motorcycles sell in India every month, and of this the 100 cc and 125 cc bikes together account for nearly 650,000 units. Around 60 per cent of all three-wheelers in the country are CNG, while in cities with strong CNG penetration, around 30 per cent of cars run on this fuel.

The segment thus offers a significant opportunity – even if 30 per cent of the 900,000 units switch to CNG, the volumes would be around 300,000 units a month.

Industry insiders felt there is room for more players in this segment and this would also lead to network expansion of CNG stations. “We will have to wait and watch how this works out. The CNG-petrol kind of flex-fuel bikes are heavier and the consumer may feel a lack of power. Whether the cost savings nudge him to this segment, time will tell,” said an official of a two-wheeler OEM (original equipment manufacturer) on condition of anonymity.

Bajaj Auto is starting with sales in states like Maharashtra and Gujarat, and with a production capacity of 10,000 units a month.

Nomura has said Bajaj Auto may sell 5,000-10,000 units per month by the end of the year, and is likely to break even in 13-42 months.