With the latest launch of its Freedom 125 in Pune, Bajaj Auto has thrown down the gauntlet within the commuter motorbike house. By being the primary of its variety to supply compressed pure fuel (CNG) as a gasoline possibility, the brand new providing has the potential to be a large disruptor within the 100cc-125cc motorbike section. The entire variety of commuter bikes offered every month is round 650,000 items of which Bajaj Auto’s share is 150,000 items.
Hero MotoCorp is the chief within the 100cc house whereas the 125cc class is the bastion of Honda Bike & Scooter India. Bajaj Auto is the No 2 participant right here and the Freedom 125 will attempt to bridge the hole with the market chief. “We now have an actual alternative and are on the proper place and time,” Rajiv Bajaj, Managing Director, mentioned on the press convention.
From his standpoint, the brand new motorbike is a game-changer in lots of facets. “You want freedom of thought, expression, speech and motion to find out your future. The spirit of freedom is integral to each Indian…freedom from petrol costs, freedom from charging considerations, from boring designs of commuter bikes, freedom from uncomfortable rides and freedom from unsustainable options to help sustainable applied sciences,” Bajaj elaborated.
Differentiator technique The motorbike can be in sync with the corporate’s technique of differentiation which has been its mantra for the reason that time the Pulsar was launched over twenty years in the past. It blazed a brand new path in sports activities bikes and the corporate then prolonged this differentiator system to the Uncover 125 which was launched in 2004.Now with Freedom, Bajaj Auto will probably be hoping that it will probably play the function of a disruptor within the commuter house. Volumes will probably be modest to start with at about 10,000 items every month after which rising quickly to 40,000 items by the tip of this fiscal.
The bike will probably be launched in Maharashtra and Gujarat first earlier than it makes its approach into different elements of the nation which have sufficient CNG shops. In spite of everything, its availability is important for any buyer to ponder shopping for the Freedom. At present, there are over 6,000 shops for CNG unfold throughout 335 cities and cities. It’s a a lot more healthy quantity than the time it was first made obligatory in New Delhi practically 25 years in the past and lengthy, serpentine queues have been the order of the day.
The Bajaj Auto MD recalled the time when he obtained “startling information” one afternoon within the workplace {that a} group of auto rickshaw drivers had smashed a CNG retail outlet. They have been upset about the truth that there was only one CNG station catering to a military of auto rickshaws
whose drivers had been ready for 10-12 hours to replenish fuel. The pent up frustration spilt over into large ranges of anger which led to the outlet just about being destroyed.
Supporting ecosystem “Clients anticipate a holistic model expertise and the supporting ecosystem is as very important. It’s not sufficient making a brand new product alone,” reiterated Bajaj. To that extent, the Freedom could have entry to extra CNG shops at present, in comparison with the dismal situation on the flip of the century, the place policymakers erred in placing the cart earlier than the horse. The zeal for clear air options preceded any effort to sit down and work on a plan first in creating the required infrastructure.
Over the following 3-4 months, the sector workers at Bajaj Auto will probably be gauging buyer response to the Freedom throughout Gujarat and Maharashtra. All of the suggestions will probably be rigorously recorded and used as essential inputs to plan the following plan of action. This was just about the case with the Chetak electrical scooter which was launched initially in Pune and Bengaluru earlier than it got down to unfold its footprint throughout different elements of the nation.
Trade consultants ETAuto spoke to mentioned there was no query that the Freedom 125 was a triumph of innovation and a feather in Bajaj Auto’s cap. “The very fact that it’s the world’s first CNG motorbike isn’t any small feat and it is a matter of nice satisfaction to India,” mentioned a former CEO of a two-wheeler firm.
Will this be ok for patrons to make a beeline for the Freedom? One other official mentioned the largest deterrent with CNG was the lengthy queues in gasoline stations, of which a bulk comprise three-wheelers. “Will a Freedom proprietor have the time, inclination and endurance to sweat it out for half an hour to get his bike crammed? I’m not certain if he’ll precisely be leaping for pleasure on the prospects,” he added.
Easy accessibility In accordance with a CEO of a two-wheeler finance firm, most CNG shops are situated in cities whereas the true markets for commuter bikes lie in rural India. “Residents of small cities will probably be prepared to purchase and trip the Freedom given its low working prices however in addition they should be assured of easy accessibility to CNG,” he mentioned.
Representatives of oil advertising corporations, who have been additionally current on the press convention, have been nevertheless assured that CNG infrastructure can be ramped up rapidly within the coming years. The likes of GAIL, Indraprastha Gasoline, Mahanagar Gasoline, IOC, BPCL and HPCL together with Reliance BP Mobility, Adani Whole Gasoline, Nayara Vitality and many others might want to go the additional mile to develop the CNG community.
As business observers say, this train remains to be well worth the whereas foolish as a result of “it will be suicidal to place all eggs within the electrical basket”. Whereas this was seen as the most effective answer at one time limit particularly in markets like India and Europe, there’s now a rising realization that different clear gasoline choices like CNG should be examined too.
The Freedom 125 is now forward of the curve when it comes to having the primary mover benefit. Because the community for CNG grows, its penetration will improve correspondingly as soon as early adopters additionally start spreading the world. The transition can be occurring rapidly within the vehicle section the place corporations like Tata Motors, the market chief in electrical, at the moment are going all out with CNG too.Tata Motors expertise Shailesh Chandra, Managing Director of Tata Motors Passenger Autos and Tata Passenger Electrical Mobility, had advised this author in an interview that this decade would see an elevated deal with CNG. The concept was to supply a “worth proposition” within the backdrop of rising petrol costs accompanied by the very fact that there have been plans to extend its unfold throughout the nation.
In accordance with Chandra, CNG might change diesel within the decrease segments — use of diesel had, in any case, come down in passenger vehicles particularly in hatchbacks and sedans put up Bharat Stage VI. It continues to be related in greater vehicles and SUVs the place clients search extra energy.
Within the mid-term, continued Chandra, engine capacities of lower than 1.5 litres would transfer in the direction of petrol/CNG whereas these in extra (of 1.5 litres) would nonetheless have diesel. Within the long-term, although, diesel would come beneath stress as a consequence of stringent emission norms like Euro 7 which might make their approach into India.
The Tata Motors expertise would have additionally satisfied Bajaj Auto that the Freedom 125 would progressively develop in acceptance each amongst private customers and the gig financial system the place value of possession is a crucial issue. As soon as CNG provides improve and queues scale back at gasoline stations, bike taxis like Rapido wish to strive their palms with one thing just like the Freedom 125. Affordability is all-important within the B2B house and right here is the place the likes of Swiggy, Zomato and Zepto wouldn’t thoughts experimenting with the Bajaj providing.
