After losing market share in the commuter motorcycle segment last year, Bajaj Auto aims to regain momentum with the launch of a cheaper entry-level 125cc bike in the coming months. The launch of the model, which is expected to cost less than the current entry-level price of Rs 85,178 (ex-showroom), comes at a time when buyers are shifting away from the budget 100cc bike segment in favour of more powerful yet fuel-efficient motorcycles, such as those in the 125cc category.
The cheapest bike in the segment is the Hero Super Splendor priced at Rs 80,848. Bajaj has two other Pulsars in the 125cc category priced at Rs 99,000 and Rs 1.06 lakh.
“The 125cc+ segment is our core focus area in which we continue to hold a solid number 2 position. Estimating market share basis Vahan registrations, we have noticed erosion during the year,” Rakesh Sharma, executive director, Bajaj Auto said in a post-earnings call.
“From an estimated market share of 21% in FY23, we went up to 26% in FY24 and have closed at 24% in FY25 in the 125cc+ segment. Our countermeasures to reverse this are already in place from April onwards,” Sharma added.
According to Society of Indian Automobile Manufacturers (SIAM) data, the 110-125cc segment — with bestsellers like the Honda Shine and Pulsar 125 — grew 13% to 3.6 million units in FY25. The 125cc to 150cc segment led all categories with a 35% growth, closing the year at 722,000 units.
The entry-level segment, below 110cc, saw no growth and ended FY25 with volumes of 5.65 million units. Hero MotoCorp, holding a 79% share of this segment, recorded just 1% volume growth during the year. Bajaj noted that the 125cc segment has now matched the mid-100cc segment in size.
When asked if the entry-level 125cc segment will sport a new brand or if it will be yet another Pulsar (there are already three 125cc Pulsar models on sale), Sharma said, “So that question is still open. As the product acquires its specifications and its full form, we will decide on the branding.”
“I can say that the 125cc segment, in particular, not the 125cc+, the 125cc segment is almost now equal to the executive 100cc segment, which is like 28% of the Indian motorcycle industry. And we can see two or three sub-segments emerging over here,” Sharma added.
Bajaj’s Freedom 125 became the first motorcycle in India powered by compressed natural gas (CNG). Launched in July 2024, the bike has clocked more than 60,000 units in sales to date.
