To make the Freedom CNG bike more accessible, Bajaj has reduced prices in the range of Rs 5,000 to Rs 10,000
In a short period of time, Bajaj Freedom CNG motorcycle has emerged as a bestseller. In October, Freedom CNG sales were at 30,051 units. That makes it the fourth best-selling product in Bajaj’s portfolio. MoM gain was 53.02%, as compared to 19,639 units sold in September 2024.
Bajaj Freedom CNG price cut – Stock down by around 2%
It was in July 2024 when the world got its first dual-fuel CNG motorcycle. Freedom CNG bike was a significant milestone for Bajaj. However, just five months after its launch, Bajaj Freedom CNG 125 prices have been reduced. The base variant gets a price cut of Rs 5,000, whereas the mid-level variant is cheaper by Rs 10,000.
Bajaj Freedom CNG base variant (drum) new price is Rs 89,997. The mid-spec Freedom CNG (Drum, LED) variant is available at Rs 95,002. Pricing for the top variant, which has a disc brake and LED lights, remains unchanged at 1.10 lakh. The price reduction does not result in any changes to the equipment list.
Price reduction will be beneficial for customers and it can also help boost sales of Bajaj Freedom CNG bike. However, stock markets have treated the price cuts as a negative development. Especially due to the gap between actual sales and dispatches to dealerships. As per VAHAN data, sales of Bajaj Freedom CNG 125 are shown at 34,000 units to date. But dispatches to dealerships are at 80,000 units. Moreover, price cuts were also announced on select Pulsar models after Diwali.
Due to a negative reaction by stock markets, Bajaj Auto’s share price had tanked by around 2%. It is down to Rs 8,983. UBS expects a further correction in the stock price of Bajaj Auto. The stock price of Bajaj Auto has already been corrected by around 30% since its peak of Rs 12,774 in September 2024. UBS has a sell recommendation for Bajaj Auto and has set a price target of Rs 7,800.
‘Buy’ rating for Bajaj Auto by other analysts
Even though UBS has given a ‘sell’ rating, not all analysts have the same opinion. Among 47 analysts that cover Bajaj Auto stock, 20 analysts still maintain a positive ‘Buy’ rating. And 11 analysts have given a ‘Hold’ rating for Bajaj Auto stock. The remaining 16 analysts have a ‘Sell’ rating for Bajaj Auto stock.
It remains to be seen how Bajaj Auto stock will perform in the coming days. While domestic two-wheeler sales growth in November is negative (YoY), exports have registered a gain of 26%. Overall, the YoY growth is positive in November at 5%. YTD (Year to Date) numbers are better, revealing positive growth in both domestic and international markets.
Bajaj is India’s largest two-wheeler exporter and expects better performance in the coming months. For its Freedom CNG bike, the strong potential exists in markets like Tanzania, Egypt, Peru and Columbia. Bajaj will also introduce new products, which can help deliver better sales growth figures.
Source: Bike - rushlane.com
