Bajaj Auto pushes back launch of CNG-powered motorcycle to July 17

The motorcycle was slated for launch on June 18, Rajiv Bajaj, the managing director of Bajaj Auto, had told CNBC-TV18 in May.

Bajaj Auto has put off the launch of the world’s first CNG-powered motorcycle to July 17, almost a month later than the earlier announced date of June 18.

A spokesperson of the two-wheeler maker confirmed the change to Moneycontrol without citing any reasons.

Bajaj Auto managing director had told CNBC-TV18 in May that the bike would be launched on June 18.

The delay comes a day after the automobile industry asked the government to cut goods and services tax (GST) on CNG and flex fuel-powered two-wheelers.

The Society of Indian Automobile Manufacturers (Siam) requested the heavy industries ministry to cut down GST to 18 percent from 28 percent, which is the current base rate for all two-wheelers, CNBC-TV18 reported.

Also read: Siam wants GST on two-wheelers to be lowered

The industry wants the tax for CNG and flex-fuel two-wheelers further lowered to 12 percent, once 18 percent becomes the base rate for all two-wheelers, the report said.

The industry has made this request specifically for two-wheelers, the report said.

During the interview with CNBC, Bajaj said the new model will halve the running cost compared to petrol-run bikes. He had also said the CNG-powered motorcycle will cater to cost-conscious customers amid high petrol prices.

Bajaj Auto’s CNG-run bike, likely to be called Bruzer 125 CNG, will be launched in Maharashtra first and then in other states where CNG stations are available.