Revving Up the Ride: Bajaj Auto's CNG Motorcycle Debut
Bajaj Auto's Managing Director Rajiv Bajaj aims to 'return the favour' to Hero Honda with the launch of the world's first CNG-powered motorcycle, 'Freedom'
Cng MotorcycleBajaj AutoHero HondaRajiv BajajNiti AayogGstTwo Wheeler MarketReal Estate NewsJul 06, 2024
In 1997, Hero Honda's former chairman Brijmohan Lall Munjal had remarked that 'now we have to be careful because the Tiger is wounded' after becoming the market leader. Rajiv Bajaj quipped that 'the message 30 years later is Tiger Zinda Hai (Tiger is alive)'.
The launch of Bajaj's CNG motorcycle comes at a time when the government think tank NITI Aayog has set a target of 100% electrification in two-wheelers by 2030. India is the world's largest motorcycle market, with around 9 lakh units sold monthly. Although Bajaj has a limited market share in the commuter motorcycle segment, Rajiv Bajaj is optimistic about the potential of CNG motorcycles. He pointed out that in major cities, 30% of car sales are CNG, and if CNG motorcycles can achieve a similar penetration, it would translate to 2 lakh motorcycles.
Rajiv Bajaj emphasized that consumer behavior needs to change and adapt to new technologies. He urged the government to review GST rates for clean fuels, citing examples from ASEAN and Latin America, where GST rates are significantly lower. He suggested bringing down the GST rate on two-wheelers to 12% to make them more affordable for the common man.
When asked about investments in research and development, Rajiv Bajaj stressed the importance of balancing risk and innovation. He believes that investing 10-15% of the company's bottom line in R&D is crucial for future growth, but exceeding that could pose a risk to the company's stability.
With the launch of 'Freedom', Bajaj Auto has taken a significant step towards providing a cost-effective and eco-friendly alternative to traditional motorcycles. As the market leader in the waiting, Bajaj Auto is poised to 'return the favour' to Hero Honda and reclaim its position in the Indian two-wheeler market.
Frequently Asked Questions
What is the price of Bajaj's CNG motorcycle, 'Freedom'?
₹95,000 (ex-showroom Delhi)
What is the target set by NITI Aayog for two-wheeler electrification?
100% electrification by 2030
What is the current market share of Bajaj in the commuter motorcycle segment?
Small market share
What is the GST rate suggested by Rajiv Bajaj for two-wheelers?
12%
What percentage of the company's bottom line does Rajiv Bajaj suggest investing in R&D?
10-15%
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