Bajaj Auto, the third-largest bike maker by gross sales, stated it is going to disrupt the entry degree home bike market with the launch of the world’s first compressed pure gasoline (CNG)-run bike, which it claims will halve the month-to-month gas expense.
Bajaj Auto is hoping this may shake up market chief Hero MotoCorp’s dominance within the entry-level section.
To be launched beneath a totally new model, Bajaj’s bi-fuel bikes – that may run each on CNG and petrol – shall be priced at a premium in comparison with the petrol ones within the entry degree (125cc and under) of the market the place patrons’ sensitivity to gas value hikes is increased, stated Rakesh Sharma, government director at Bajaj Auto.
One in each two bikes bought within the native market belongs to the entry degree.
Bajaj Auto’s share within the 100-110cc bikes at current stands at 8%, Sharma stated.
From an working price standpoint, the CNG bikes will straightaway halve the month-to-month bills for patrons, he stated.
“It is a massive transfer for us. We’re hopefully going to make use of this (CNG bikes) as a chance to disrupt the section,” Sharma instructed ET.
Bajaj has made a number of makes an attempt to woo the mileage-conscious entry-level prospects by introducing fashions that boast of consolation, fashion and security options.
Nevertheless, Hero, which leads the section, continues to benefit from the first-mover benefit, and gas effectivity stays an over-riding attribute demanded by entry-level patrons.
With inside combustion engine-powered fashions reaching its technological limits and electrical bikes having their very own challenges, creating CNG bikes emerged as a compelling motive for Bajaj Auto, Sharma stated.
Moreover, an growing density of gasoline stations – 414 districts out of 700 now have CNG pumps – additionally bolstered its plans.
The expertise and market management in CNG three-wheelers of a number of years, a ready-made provider base and infrastructure added heft to the corporate’s plans, serving to it align with the federal government’s targets of carbon discount, Sharma stated.
Very similar to the Chetak electrical scooters, the CNG bikes shall be a brand new section for the corporate and the volumes shall be incremental to the general two-wheeler enterprise and never cannibalise both its petrol or EV portfolio, he added.
By way of auto trade physique Society of Indian Vehicle Producers (Siam), Bajaj Auto is lobbying with the federal government to carry down the GST on CNG-powered automobiles to 18% from the present 28%.
“The discount would assist in mitigating the event prices and value it competitively,” Sharma stated.
The largest problem in creating the bike was packaging the CNG cylinder in a way that it is built-in with the styling of the bike, he stated.
Bajaj will first launch the CNG bike in Maharashtra and Gujarat, which have good CNG infrastructure, and subsequently roll it out in different states.
Ranging from the entry degree section, Bajaj plans to develop a portfolio of gas-powered bikes. Whereas India shall be a key focus, it is going to additionally faucet into choose markets like Bangladesh within the later part.
