World's first CNG bike launch likely in next quarter, says Rajiv Bajaj

Bajaj Auto, which has more than 30 percent market share in India's three-wheeler market, already has tasted success with CNG technology

Bajaj Auto is poised to launch the world’s first compressed natural gas (CNG)-powered motorcycle in the next quarter, revealed the firm’s Managing Director Rajiv Bajaj on Monday. This announcement precedes the previously anticipated 2025 launch.

In an interview with CNBC-TV18, Bajaj said, “The motivation is twofold. One is from the environmental perspective because now, we are well into testing, and we can observe that, compared to a gasoline motorcycle, carbon dioxide is down by almost 50 per cent, carbon monoxide is down by 75 per cent, and non-methane hydrocarbons are down by 90 per cent. So, this is a motorcycle that’s potentially great for the environment. But equally, it promises to do what Hero Honda did 40 years ago, which was effectively to double mileage or to halve the cost of fuel for the aam aadmi, which, I think, has a fantastic impact on the wallets of those consumers.”

Bajaj Auto is now confident about launching the bike within the next quarter. Bajaj could not be reached for an immediate comment.

“And then from there to expand is easy, but as you can imagine, it’s been the same with electric vehicles; you have to get the technology right, you have to get the dealer piece and the service right, the service quality right, and of course, irrespective of how much we anticipate and prepare for, there is always some surprise from a consumer experience point of view,” he added.

In a recent interview, Bajaj Auto Executive Director Rakesh Sharma said that the company feels CNG is a great option for the country, for society, and the riders. Sharma also indicated that it will not only be one vehicle but a range of vehicles across segments — a portfolio of CNG motorcycles.

In January, Sharma indicated that the timeline for launch would be 2024-25.

Bajaj Auto plans to position this offering to target mileage-conscious consumers, and the CNG bike is likely to be launched under a different brand.

While the CNG bike is expected to be priced at a premium over petrol counterparts, Bajaj’s CNG bike is likely to be in the 110cc category, targeting the value-conscious customer. The entry-level segment of motorbikes has been witnessing slow growth as such, despite commanding around 50 per cent of the market.

Industry insiders feel that if the duty on CNG bikes is kept at 5 per cent or 12 per cent, there would be better offtake of this new category of bikes because CNG as a fuel is easily available. By the end of 2024, around 8,000 CNG filling stations are expected.

The two-wheeler industry has been toying with CNG fuel for some time now.

In 2016, a pilot in Delhi by the government attempted to test CNG-powered Honda Activa models. The pilot project did not quite take off as there were performance-related issues with these petrol two-wheelers, primarily a lack of power. Packing CNG tanks into a two-wheeler is also not easy and leads to maintenance costs.

Bajaj Auto, which has more than a 30 per cent market share in India’s three-wheeler market, has already tasted success with CNG technology, with around 60 per cent of three-wheelers running on CNG.