Chinese bicycles are 15 % to 20 % cheaper

As the Chinese bicycles are 15 % to 20 % cheaper,  Indians prefer them & it acts as one of the biggest challenges confronting the bicycle industry.

April 19 World Bicycle Day

Bicycle Day is April 19, commemorating 1943 April 19, when Dr. Albert Hofmann first took LSD intentionally.




PROBLEMS IN THE BICYCLE INDUSTRY IN INDIA ARE...

Poor Public Transport Infrastructure..

One of the greatest hurdles in the path of growth of bicycle industry is the lack of public transport infrastructure. People do not adopt bicycles as means of transport because of lack of safety on roads.

The condition of the roads and safety while riding cycle has always been a discouraging factor for cycle lovers. Infrastructure remains the major hurdle for the cycle manufacturers.  

Stiff Competition from Chinese products..

Small, Medium entrepreneurs (SME) in India are importing cheap Chinese bicycles. They import via other countries by "circumventing" the law which has resulted into a blow to the domestic bicycle makers.

They import Chinese bicycles via Sri Lanka and Bangladesh under free trade agreements as import duty on bicycles and parts from these countries is about 6.4 per cent as against duty of 20 % (parts) and 30 % (bicycles) from China.

Importers are misusing South Asia Free Trade Agreement (SAFTA) by importing bicycles and parts from Sri Lanka and Bangladesh at lower amount of import duties.

As a result of this, Indian bicycle manufacturers are finding it difficult to survive and sustain in the market.

As the Chinese bicycles are 15 % to 20 % cheaper, people prefer them and it acts as one of the biggest challenges confronting the industry.

Increase in Steel Prices..

The recent spurt in steel prices which is one of the prime inputs of the bicycle industry has posed a great challenge in front of bicycle manufacturers. Increase in the cost of production has demotivated a number of manufacturers and have added to the price of bicycles.

Bicycle prices have increased by 15% to 20 % in the last two years. The country needs to ban exports of raw materials such as iron ore, pellets etc.

Fast Moving Modern Life..

In today's fast moving life, people prefer speedy modes of transportation to save on their time.

Bicycle as a means of transportation is slow and time consuming. So, it poses another challenge for the industry.  

Src: ASSOCHAM

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