Bicycle Sector Seeking Govt. Support, As Supply Shortages Hinder Its Ability To Meet Burgeoning Global Demand

●   The supply chain disruption post-pandemic, imports restrictions from China followed by the freight train obstruction in Punjab has created major supply shortage for the bicycle sector

● Shortage of raw material and components are hindering adequate production of hi-end bikes which are high in demand in the post-pandemic period

●Hero Cycles demands urgent Government support for boosting local component manufacturing and seamless supply

 

With supply shortages and component crunch hindering the Indian bicycle sector’s ability to meet the burgeoning demand for bicycles and e-bikes, Hero Cycles have sought active support from the Government for ensuring uninterrupted supply and help for the sector in localising hi-end component manufacturing.

 

The COVID 19 pandemic has triggered a major demand surge for bicycles and e-bikes across the world including in India as people look for safer, personalised and eco-friendly transport options. However, shortage of raw material and components has meant that bicycle manufacturers are struggling to fulfill the surging demand.

 

 

The supply chain disruption in the aftermath of the pandemic, restrictions on Chinese imports and the freight train obstruction in Punjab have resulted in a severe shortage of raw materials and inputs for the bicycle sector.

 

 

The COVID 19 pandemic has not only jolted the world economy but has also brought about some long-lasting changes to our lives. As millions of people across the world sought to stay away from public transport and continue their workouts without going to gyms, bicycles emerged as a viable solution. Certain categories of bicycles particularly recreation and fitness bikes witnessed an almost 100 percent jump in demand.

 

 

Estimates suggest that India imports bicycle parts worth over USD 70 million annually. In recent years, India’s bicycle industry has come to rely heavily on China for imports of components and high-end parts. The COVID crisis has underlined the importance of sustainability in business and effective backend integration. Diversifying supply lines and establishing a strong localised component manufacturing sector is a top priority for the bicycle industry in the current climate.

 

 

Manufacturers today are working consciously to reduce dependence on Chinese imports. With a lot of mechanical and electrical components for bicycle and e-bicycles currently non-available in India, the sector requires aggressive R&D and innovation to be able to engineer these parts and ‘Make in India’ with indigenous manufacturing capability.

 

 

Hero Cycles has taken the lead towards achieving robust backward integration. It is also working aggressively to localise e-bike manufacturing including components in the country over the next few years.

 

 

 

 

 

New Delhi, 08th January 2021