A factory-made CNG motorcycle can be a major disruptor with its low pricing and running cost
In a development that could emerge as a game changer in entry-level motorcycle segment, Bajaj has hinted at the possibility of a CNG powered bike. The suggestion was provided by Rajiv Bajaj, Managing Director of Bajaj Auto Ltd. However, such decisions are likely to require the government’s stamp of approval. In case the idea gets the green signal, Bajaj will have the first-mover advantage in CNG motorcycle segment.
Bajaj CNG motorcycles – key benefits
Rajiv’s suggestion for CNG bikes comes at a time when there has been a major push towards using cleaner and greener fuels. While cars can choose from petrol, CNG, electric, hybrid, plug-in-hybrid, fuel cell, etc., the choices for two-wheelers are limited to petrol and electric. CNG can work as a good option, as it is cheaper in comparison to petrol.
Moreover, CNG is less polluting than petrol and ethanol-mix petrol. The latter has issues related to corrosion, which may necessitate the use of special components in the powertrain. Such issues and related costs can be avoided with CNG powered bikes. Rajiv Bajaj has stated that CNG bikes will be cheaper to buy and reduce running costs.
A CNG bike seems doable, as we have already seen Activa scooters fitted with CNG kits. Now, if CNG bikes are factory-made directly by an OEM, users can expect better results in terms of price, performance, mileage, durability and safety. Provided that the project gets the necessary approvals, Bajaj will be introducing CNG option for its 100cc – 125cc bikes.
CNG bikes to boost sales
CNG bikes can help boost sales in entry-level commuter segment. Growth in this space appears to have plateaued, as people are shifting to EVs or higher capacity bikes. Bajaj itself registered sales of 20,000 units of its Chetak electric scooter at the end of June 2023. But that is just around 2% of the company’s total sales in that period. Bajaj expects the EV contribution to increase to around 3-4 percent by end of this year.
In ICE segment, around 70% of the company’s sales come from above 125cc bikes. This is why Bajaj has stepped up focus in this space. As part of that plan, the Pulsar 250 twins were launched in 2021. Bajaj has also updated the entire Pulsar range. Bajaj has now hinted at the biggest Pulsar ever, which could be a 400cc bike. Rajiv Bajaj has said there will be 6 new Pulsar launches this year.
CNG powered bikes could be a major disruptor. These can attract an entirely new segment of users. For example, folks who may be relying on public transport. CNG bikes could also work for commercial applications. As CNG is far less polluting, there shouldn’t be an issue in having more of these bikes on the streets. The only concerns could be about the safety of these bikes. OEMs will need to design more robust systems that can comply with mandated safety norms.
