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How will the motorcycle industry respond to India’s energy policy?
In addition to ensuring energy security, the Indian government aims to overcome the trade and current account deficits caused by the increasing cost of imported fuels such as crude oil, and has set a goal of achieving 100% energy self-sufficiency by 2047, the 100th anniversary of independence.
Toward this goal, the government is expanding power generation through domestic coal-fired power generation, renewable energy, and nuclear power generation, and is also focusing on fostering the bio-ethanol and biogas industries and infrastructure development.
Motorcycle manufacturer Bajaj Auto has introduced the world’s first CNG (compressed natural gas) motorcycle to the market, in addition to battery-powered electric motorcycles.
Among Japanese manufacturers, Honda began selling its E85 (85% ethanol, 15% gasoline) compatible flex-fuel motorcycle, the CB300F Flex-Fuel, in October 2024, while Honda and Suzuki plan to launch electric scooters in 2025.
In India, sales of electric motorcycles expanded to 1.15 million units in 2024, but the majority of these were scooters, with only a few tens of thousands of motorcycles sold.
In the motorcycle segment, on the other hand, the CNG model Bajaj Freedom, launched in July 2024, has sold 44,000 units by the end of January 2025, showing demand far exceeding that of electric motorcycles.