When Bajaj Auto rolled out the Freedom 125, it pitched the motorcycle as a disruptive answer to rising fuel costs in the commuter segment. For a brief moment, the proposition appeared to resonate. Monthly sales climbed to 12,167 units in November 2024, signaling early traction for what was billed as the world’s first CNG motorcycle.
That momentum has since tapered off sharply. Sales dropped to 1,529 units in February 2026, down 63% year-on-year, even as Bajaj’s overall two-wheeler volumes grew 17% in the same period. From its peak, volumes have fallen 87%, underlining the difficulty of sustaining demand for a new fuel format in a price-sensitive market.
While the Freedom 125 was positioned as a cost-efficient alternative in the 100–125cc category, its cumulative sales of 84,590 units account for just 2% of Bajaj’s total two-wheeler volumes since launch. In comparison, electric vehicles (EVs) have scaled faster, contributing 12% to the company’s volumes, indicating a clear shift in market preference.
Increasingly visible gap
The gap is particularly visible against the company’s own expectations. Managing Director Rajiv Bajaj had projected monthly sales of 40,000 units by March 2025 for the platform to become viable. Actual volumes have remained below 4,000 units a month through FY26.
Bajaj’s management attributes the slowdown to ecosystem constraints rather than lack of demand. In a recent post-earnings investor call, the company said CNG adoption will follow a long curve, pointing to inconsistent re-fuelling pressure and limited network density as key bottlenecks.
“When the gas is not fully filled, it compromises range. The first adopters are people who are heavy-duty users because they tend to save more. And for them, range is very important. And when that range gets compromised, they switch the CNG to petrol,” Rakesh Sharma, executive director, Bajaj, said in the call.
He added that the company is now focusing on regions with higher pump density rather than just expanding the network numerically. Even in relatively dense CNG markets, however, execution gaps persist. Long queues and uneven supply reduce real-world efficiency, weakening the vehicle’s core value proposition. Analysts say the economics remain highly dependent on location.
“The cost advantage is limited and highly location-specific,” said a sector analyst. The Freedom 125, which comes with dual fuel tanks of 2 kg of CNG and 2 litres of petrol, was marketed with an operating cost of Rs 0.76 per km in Delhi. In cities such as Noida or Dehradun, higher CNG prices reduce savings to about Rs 0.36 per km, narrowing the gap with petrol.
Pricing adds to the challenge
Pricing adds to the challenge. At an entry point of Rs 91,566 (ex-showroom), the model competes with petrol motorcycles while also facing pressure from increasingly affordable electric options. EVs, backed by lower running costs, improving range and policy support, are emerging as a more viable choice, particularly for fleet operators and gig workers – the very segments Bajaj is seeking to tap.
Market feedback highlights additional concerns around limited model choice, resale uncertainty and safety perceptions. “Early adopters want more than just efficiency, they want features and design,” said Puneet Gupta of S&P Global Mobility. “At the same time, the rise of affordable EVs is eroding the cost advantage that CNG once promised,” he added.
Operational comparisons also weigh on adoption. The Freedom 125’s CNG range of around 202 km, combined with its dual-fuel setup, contrasts with petrol motorcycles offering close to 500 km per tank, while electric scooters continue to close the gap with expanding charging networks.
Bajaj’s CNG volumes remain geographically concentrated, with nearly 60% of sales coming from five states of Maharashtra, Gujarat, Uttar Pradesh, Delhi and Haryana, reflecting dependence on existing infrastructure.
The company has maintained that improvements in pipeline quality and re-fuelling density will support adoption over time. Queries sent to Bajaj remained unanswered till the time of going to the press.
For now, the Freedom 125 sits between two moving targets, a patchy CNG ecosystem and a rapidly scaling EV market, thereby raising questions on whether CNG motorcycles can achieve meaningful scale in the evolving mobility landscape.