Rajiv Bajaj, the billionaire Managing Director of Bajaj Auto, has hinted at an entry-level motorcycle that runs on compressed natural gas (CNG). The premise is that CNG motorbikes will be cheaper, to both buy and refuel, and that may lure buyers who can't afford high petrol prices.
If Bajaj goes through with the plan, it would be the first in India to manufacture a fully CNG motorbike at the plant. In earlier experiments in India, petrol engines were replaced with CNG ones.
"Who knows maybe a CNG Bajaj motorcycle that halves people's (bike) running costs would be the answer with a little help from the government," said Bajaj (net worth of $4.3 billion, according to Forbes) in an interview with CNBC-TV18.
In 2016, the Government launched a pilot programme in New Delhi to run two-wheelers on CNG. As part of this pilot project, some food delivery services have been using CNG-powered Honda Activa models.
While he didn't reveal any specific details, Bajaj dismissed the idea of a CNG scooter and not the possibility of a CNG motorcycle. This, along with an appeal to Finance Minister Nirmala Sitharaman for a cut in goods and services tax (GST) on CNG vehicles to 18 percent.
Recently, India's roads and highways minister Nitin Gadkari urged companies to expedite the shift to vehicles that run on cleaner fuels, particularly electric. At the end of June 2023, the Pune-based Bajaj Auto had sold about 20,000 units of its electric two-wheeler, Chetak.
That's about 2 percent of its total sales, by volume, and this number could rise to 3 percent to 4 percent by the end of the year, estimated Dinesh Thapar, the company's chief financial officer.
While India has been pushing for the sale of more EVs, it also wound down the subsidies offered to the makers of EVs starting June 2023.
The slump in entry-level two-wheeler sales, from 100cc to 125cc,
since the pandemic, has been worrying for companies like Bajaj Auto (market capitalisation of Rs 1.46 lakh crore or about $18 billion).
Rising petrol prices and a shift towards electric two-wheelers are also impacting traditional fuel-based two-wheelers, according to the MD. The company offers two models in the 100cc segment — the Bajaj Platina 100 and the Bajaj CT 100.
While the buyers of entry-level motorcycles sales have been few and far in between for the last few years, the number of people buying faster, more expensive models have increased. So, the companies have also shifted focus to that segment. Bajaj itself said that over 70 percent of its sale volumes are now of bikes that are more than 125 cc bikes.
This is the segment to which Pulsar belongs, and competes with the likes of the Yamaha FZ series, the Suzuki Gixxer lineup, TVS Apache models, and the Hero Xtreme. And, Bajaj has raised the stakes by announcing six new upgrades and a fresh new model of Pulsar to be launched this year.
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