Bajaj Auto, India's only CNG bike manufacturer, has experienced a dramatic decline in sales of its Freedom 125 CNG bike. According to reports from Business Standard, registrations plummeted from a peak of 12,167 vehicles in November 2024 to just 1,211 vehicles in May 2025. In June, the company registered only 970 vehicles, highlighting the severe impact on the segment.
The primary driver behind the sales decline is the narrowing price differential between CNG and petrol. As reported by Business Standard, the gap between CNG and petrol has shrunk from ₹32 per kilogram when the product launched to only ₹25 per kilogram currently. When the model was introduced, CNG was priced at ₹75 per kg while petrol was at ₹107 per litre. However, by May 2025, CNG in Mumbai had risen to ₹86 per kg while petrol reached ₹111.21 per litre.
The West Asia crisis and rupee depreciation have significantly affected CNG availability and pricing. According to Business Standard, CNG is imported, making it more expensive during the current crisis. The situation has been compounded by long queues reported at CNG stations across many cities, creating major barriers for this fuel category. Despite the challenges, the total number of CNG stations has grown to around 8,600, though this remains significantly smaller than the more than 100,000 petrol pumps available nationwide.
Rakesh Sharma, joint managing director of Bajaj Auto, acknowledged the challenges facing the CNG motorcycle segment. As reported by Business Standard, he stated that the development of CNG options in motorcycles is facing challenges from reduced arbitrage between CNG and gasoline, along with availability issues. The company had initially positioned the CNG motorcycle as offering 45% lower running costs compared to petrol and planned to enter the CNG scooter market, with projections that CNG motorcycle sales would mirror the share of electric vehicles.
Despite the recent decline, Bajaj Auto achieved significant sales volumes in 2024. According to Business Standard, the company registered 38,235 vehicles in just six months starting July 2024, with full-year 2025 sales reaching 42,235 vehicles. However, calendar year 2026 registrations have dropped to 8,483 vehicles, reflecting the dramatic impact of the current market conditions on the CNG segment.
