Bajaj Auto clarifies on dealer inventory, says no price cut on Freedom's 72% portfolio

The CNG bike's top tier, which is 72% of the portfolio, has not seen any change in the price or features since the launch, said Bajaj Auto, adding that the company offered a Rs 5000 price cut on the entry level variant at the end of October which accounts for 13% of retail sales of the range.

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26 Aug, 2025 12:21

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Bajaj Auto has issued a clarification in response to a brokerage report over its recently launched CNG-based motorcycle model 'Freedom' and the 'Pulsar' bike, stating that concerns over price cuts are misplaced and inventory with dealers is 'within the norm required' for its distribution.

The two-wheeler company did not name the brokerage firm, however, a note by UBS Securities had pointed that Bajaj Auto cut prices for Freedom 125's entry and mid-level variants, along with prices of select Pulsar variants after Diwali. Shares of Bajaj Auto extended Wednesday's fall in early trading session on December 5, once again down nearly 2%. However, on a YTD basis, shares of Bajaj Auto are higher by 31%.

Inventory Concerns

Bajaj Auto said the company has billed and dispatched 67,000 units of Freedom motorcycle to dealers as of November, and not 80,000 as mentioned in the brokerage note. Out of these, 40,000 units having been retailed during of which 33,000 were registered on the Vahan portal. The closing inventory with dealers at the end of the last month is 'well within the norm required for a two-tiered distribution', Bajaj Auto added.

Freedom Price Cut

The CNG bike's top tier, which is 72% of the portfolio, has not seen any change in the price or features since the launch, said Bajaj Auto, adding that the company offered a Rs 5000 price cut on the entry level variant at the end of October which accounts for 13% of retail sales of the range. The price for the top range Freedom has stayed unchanged at Rs 1.10 lakh ever since the launch.

For the mid-range variant of Freedom, which accounts for 15% of sales for the range, Bajaj has offered a 'reconfigured' model based on feedback, with features different from what was originally envisaged. This model is now priced at Rs 95,000.

Bajaj Auto said these changes to the brand portfolio have been made to make it more 'accessible to a fuller spectrum of customers', and the modifications are based on customer feedback.

Pulsar Model

The price of models in the Pulsar portfolio have gone both up and down in last couple of months, said Bajaj Auto, calling this a regular exercise to drive competitiveness and profitability.
"The net impact of all these price changes on the quarter is nominal," Bajaj Auto added.

The revisions in price, both upwards and downwards, are part of the normal course and recognises the level of promotions and discounting, said the company.

For the September quarter, Bajaj Auto had posted lower-than-expected net profit, after it revised its growth outlook for domestic two-wheeler sales to a modest 5 percent, at the lower end of its earlier estimate of 5-8 percent.