In the wake of the ongoing West Asia crisis, which has led to multiple hikes in the prices of petrol, diesel and CNG, and also resulted in growing demand for electric vehicles, one of the collateral impacts has been on the CNG-powered Bajaj Freedom 125. Retail demand for the world’s first CNG-powered motorcycle has fallen to a new monthly low of 1,210 units in May 2026, as per the Vahan portal. The Bajaj Freedom 125’s highest monthly sales came in the festive months of October 2025 (11,079 units) and November 2025 (12,167 units), just a few months after launch.
When Bajaj Auto launched the world’s first CNG motorcycle on July 5, 2024, it was felt that, given the uniqueness of the product as well as the wallet-friendly fuel compared to costlier petrol, sales would take off in India. However, the market reality is somewhat different two years down the line.
Along with the smaller CNG filling network compared to petrol or diesel, among the reasons cited for the slower acceptance of the innovation-led CNG motorcycle is the considerably narrowed price gap between CNG and petrol. In July 2024, when the Freedom 125 was launched, the price differential was Rs 32, with CNG costing Rs 75 per kg and petrol priced at around Rs 107 a litre. Twenty-three months later, in May 2026, the price gap between the two fuels had reduced to Rs 25 – CNG at Rs 86 per kg and petrol at Rs 111.21 a litre (in Mumbai).
This is something Rakesh Sharma, the joint managing director of Bajaj Auto, commented on during a media call in early May this year, before the multiple fuel hikes in petrol, diesel and CNG happened, when discussing the company’s Q4 FY2026 earnings.
He said: “For the last many months now, what has happened is that the arbitrage between CNG and petrol has changed to some extent. The gap has reduced because petrol prices have been sort of fastened and CNG prices in some key states have increased,” he said. According to Sharma, lower savings have made customers more cautious about shifting to a new fuel technology. Buyers also have to account for a new refuelling behaviour, including using different filling stations from the ones they are familiar with.
“That has been one of the key reasons for the slowdown, or slow adoption, of the CNG bike,” Sharma added. However, he pointed out that, at the product level, acceptance remains strong. “We are persisting with it... it is there in the market. At a product level, the acceptance is very good.” The company will now watch how the fuel-price equation evolves. Sharma said CNG availability, petrol prices and the savings gap will determine the future prospects of the eco-friendly Bajaj Freedom 125.
Retail sales of the Bajaj Freedom 125 crossed the 50,000 mark in mid-March 2025, just eight months after launch. However, demand has slackened since then following a narrowing of the petrol-CNG price gap.
Pitched as an Affordable, Greener Alternative to Petrol 2WS
The ground-up-developed Bajaj Freedom 125 is a motorcycle that is capable of running on both CNG and petrol and is pitched as an alternative to similar-category petrol-engined commuter motorcycles, which rely on being fuelled by expensive petrol. It is sold in three variants, starting with the NG04 Drum (Rs 91,566), NG04 Drum LED (Rs 104,117) and NG04 Disc LED (Rs 109,852, ex-showroom Mumbai).
The Bajaj Freedom 125 is powered by a new, air-cooled 125cc, single-cylinder motor which develops 9.5 hp and 9.7 Nm of torque, mated to a five-speed gearbox. Bajaj Auto claims the bike has a top speed of 90.5kph while running on CNG and, when switched to petrol power, slightly higher at 93.4kph.
Bajaj Auto claims the Freedom 125 lowers operating costs by up to 50% when compared to similar ICE motorcycles. The CNG tank provides a range of over 200 kilometres on just 2kg of CNG. Additionally, the bike’s 2-litre petrol tank acts as a range extender, offering over 130km of range in the event of the CNG tank emptying out.
This dual-fuel capability gives the rider a combined range of 330km. The Freedom 125, as per Autocar India tests, mileage of 94km/kg in the city and 126km/kg on the highway. Meanwhile, the fuel efficiency when running on petrol was predictably a lot lower – 53.4kpl in the city and 62.37kpl on the highway. On the emissions front, compared to petrol-engined bikes, the Freedom 125 emits 26.7% less CO2, 85% lower NMHCs (non-methane hydrocarbons) and 43% less NOx (nitrogen oxides).
High on safety, the Freedom 125 has successfully passed 11 rigorous safety tests, including impact tests, as well as a truck-run-over test. Earlier this year, the Bajaj Freedom 125 bagged the Autocar Bike of the Year 2025 award, impressing the jury with its innovation, value, usability and cost-effectiveness.
Lower savings vis-à-vis petrol have made bikers more cautious about shifting to the new CNG fuel technology.
Maharashtra and Gujarat Top Buyers of Bajaj Freedom 125
The Freedom 125 was initially launched in only two states – Maharashtra and Gujarat – which had, and continue to have, a strong CNG filling infrastructure. Since then, Bajaj Auto has considerably expanded the Freedom 125’s availability across India, including Tier 2 and Tier 3 towns where the CNG filling infrastructure is gradually growing. As a result, demand has been higher in states where the CNG filling station density is high. It is understood that there are around 7,000 CNG filling stations across India, billed to more than double to over 13,000 stations over the next couple of years and around 17,000 by 2030.
The Freedom 125 was quick to achieve the 50,000-unit retail sales milestone, news which Autocar Professional broke on March 18, 2025, barely eight months after Bajaj launched the green machine as an affordable, greener alternative to petrol-engined two-wheelers. At the time, Maharashtra and Gujarat were the top buyers, as they still are (see state- and UT-wise retail sales table below).
Of the 87,998 Bajaj Freedom 125s sold across India to date (June 4, 2026), Maharashtra, with 14,874 units and a 17% share, is the No. 1 state where the CNG-powered motorcycle has been bought. Gujarat, with 14,818 units, is just 56 units behind Maharashtra and has a 16.83% share of retail sales. Together, these two states, where the eco-friendly motorcycle was first launched and which have a strong CNG infrastructure in place, have a combined 34% share.
Madhya Pradesh (9,041 units, 10% share), Uttar Pradesh (8,760 units, 10% share), Rajasthan (8,134 units, 9% share), Delhi (6,039 units, 7% share), and Karnataka (5,331 units, 6% share) are ranked third, fourth, fifth, sixth and seventh in Freedom 125 ownership, respectively. They are followed by Haryana (4,271 units, 5% share), Bihar (4,057 units, 4.61% share), and Tamil Nadu (3,678 units, 4% share). These top 10 states together account for 79,003 units, or 90% of all the Freedom 125s sold in India to date.
Demand for the Freedom 125 has been higher in states/UTs where the CNG filling station density is high.
Like its petrol-engined motorcycle brethren as well as scooters, the Bajaj Freedom 125 faces a challenge in the form of electric two-wheelers which have logged strong 63% YoY growth in May 2026, a month that saw four price hikes in petrol and two in CNG. What’s more, on June 3, two days before World Environment Day 2026, which is today, Hero MotoCorp, the world’s largest manufacturer of motorcycles and scooters, unveiled its first Flex Fuel vehicles , the iconic Splendor+ (Rs 82,810) and HF Deluxe (Rs 72,792, ex-showroom Delhi), which are over Rs 25,000 cheaper than the Freedom 125 and compatible with ethanol-blended fuels ranging from E20 to E85.