Project Report

Bicycle Industry: Bicycle Spare Parts, Bicycle Components, Bicycle Accessories, Bicycle Assembling, Cycle, Bicycle Tyres and Tubes, Bicycle Tools and Equipment Projects

The Indian bicycle industry, the second largest in the world, produces around 10 to 14 mn units annually. China leads with a production of over 50 mn units. The total world market is estimated at close to 100 mn units. In value terms, the current market size is estimated at Rs. 22 bn and is growing at about 3.5% annually.The opening up of the economy in the wake of the overall liberalisation policies of the government, led to the spectre of cheap Chinese bikes entering into the Indian market.  There was, however, no major threat emanating out of these imports according to the domestic cycle manufacturers. The entire market of bicycles can be divided into domestic and foreign markets.

With many brands present in the bicycle industry, a new approach towards marketing is needed and also to penetrate competitive market cost competitiveness is required. The kids segment of bicycle is mostly unorganized with very few companies focussing on this quickly growing and lucrative section.This provides a good opportunity to provide various designs of hi quality kids bicycles online for the parents to buy and free them off of going to the market themselves as free home delivery is provided by the company.

More than 90 per cent of the bicycle production in India comes from four bicycle companies. Major players with their per cent share in this sector are Hero Cycles 35%, Atlas Cycles 24%, TI Cycles 18% and Avon 15%. Hero Cycles has grown to become the world’s largest bicycle maker followed by Atlas Cycles.

The bicycle industry in India comprises two kinds of units. The first one is unit manufacturing bicycle parts, components and accessories and units manufacturing complete bicycles. While bulk of the parts and components are manufactured in the small-scale sector; complete bicycles are manufactured in the organized sector. Large cycle units are permitted to manufacture bicycle frames, chain and rims for their captive consumption.

The global bicycle industry is expected to reach an estimated $65 billion by 2019. The major driver of bicycle industry is emergence of cycling as a preferred recreational and fitness activity, growing traffic congestion, and rising fuel prices. Increasing demand for low-cost transportation in developing countries helps to drive the bicycle industry. On the whole the future for Indian industry including Bicycle will be challenging. The domestic market will be open to good and services from global companies with low tariffs.

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