Bajaj Auto refutes price cut claims in Freedom 125 and Pulsar models

Bajaj Auto addressed reports that claimed price cuts of Rs 5,000 to Rs 10,000 for its bikes post-Diwali

Bajaj Auto has said that reports claiming price adjustments on its Freedom 125 and Pulsar motorcycle models were “incorrect” and misleading. The automaker also clarified rumours surrounding sales volumes, following the release of a research report by a brokerage firm in a statement to the stock exchange on Thursday.

 

The brokerage firm alleged that Bajaj Auto had cut the entry-level Freedom 125 price by Rs 5,000 and the mid-level variant by Rs 10,000, alongside price reductions for certain Pulsar models post-Diwali. It further suggested that these cuts could negatively affect Bajaj Auto’s financial projections.

 

Freedom 125: Actual numbers and pricing strategy

The brokerage report claimed that Bajaj Auto dispatched 80,000 units of the Freedom 125 to dealers. However, the company confirmed that as of November 30, 2024, it had dispatched 67,000 units, with 40,000 retailed during the same period. Of these, 33,000 units were registered on the government’s Vahan portal. Bajaj Auto emphasised that its stock levels align with the norms for its two-tiered distribution network.

 

The Freedom 125 range, launched on July 5, 2024, currently includes three variants: 

Top variant: The flagship model, priced at Rs 1,10,000, accounts for 72 per cent of retails. Bajaj Auto confirmed that its price and features remain unchanged since launch. 

Base variant: Representing 13 per cent of retail sales, this entry-level version saw a price revision in October, dropping from Rs 95,000 to Rs 90,000 to attract a broader customer base. 

Mid variant: Accounting for 15 per cent of retail sales, this version underwent reconfiguration based on early customer feedback. It is now priced at Rs 95,000. 

The company said that 72 per cent of Freedom 125 sales are driven by the top variant, which has neither undergone price changes nor feature alterations since launch.

 

Pulsar models: Routine price adjustments

Addressing the Pulsar lineup, Bajaj Auto stated that price revisions (both upward and downward) are part of routine market strategies. These adjustments are “part of a regular exercise to drive competitiveness and profitability”, the automaker said.

  “These upward/ downward revisions have been made in the normal course and as is typical, considering the market context including recognising the level of promotions/ discounting (that has stepped up in recent months). The net impact of all these price changes on the quarter is nominal,” the company mentioned.  Bajaj Auto’s shares were trading at Rs 8,770 on the BSE, down 2.55 per cent as of 12 pm.