Market Survey
new models of bicycles, viz, sports
By: G.P. Gandhi
BICYCLES: can India
catch up with china?
The Indian bicycle industry needs latest R&D facilities to
match with world leaders like China and Taiwan.
B
icycles continue to be the
principal mode of trans-
port for the low- and
middle-income families.
This is because the bicy-
cle is both environment- and people-
friendly.
India is the largest producer of bi-
cycles next only to China. It produces
around 1.25 crore bicycles every year,
with almost each day witnessing new
designs, colours and features. Today,
the Indian bicycle manufacturing
and bicycle parts industry is widely
recognised for its quality standards
in the international market.
Considering the rising fuel costs
and pollution, the bikes are consid-
ered ideal. These can be maintained
at low costs.
The Indian bicycle industry over
the years has introduced a variety of
and high-tech models, both for do-
mestic and export markets. It has
not paid much attention to R&D.
However, of late, some leading man-
ufacturers have started devoting
more attention to R&D for promot-
ing exports. Modern machines and
equipment are being installed and
even quality control programmes
are being instituted. An R&D centre
was set up in the 1980s at Ludhiana,
which gave a push to the use of im-
proved technology.
Ludhiana in Punjab is popularly
known as the bicycle capital of the
country, accounting for as much as
80 per cent of the bicycles and bi-
cycle parts manufactured in India.
Kanpur, Mumbai, Sonepat (Hary-
ana), Chennai and Kolkata are the
other important production centres
for manufacture of bicycles and bi-
cycle parts.
Hero Cycles has grown to become
the world’s largest bicycle maker.
The company exports its bicycles to
over 52 countries and sells over 42
models.
Another major player Atlas Cy-
cles was founded in 1961 by Janaki
Das Kapur. It is a name synony-
mous with India’s cycling revolu-
tion. The Atlas range of bicycles
includes standard roadsters, moun-
tain bikes, SLRs, children’s bikes,
women cycles and sporty exercisers
and are exported across five con-
tinents. The company has a fully
in-house R&D wing recognised by
the Government of India. It has
three manufacturing units located
at Malanpur, Sahibabad (UP) and
Sonepat (Haryana) and manufac-
tures 10,000 bicycles per day. It ex-
ports bicycles and bicycle parts to
more than 50 countries all over the
world. Atlas bicycles are more pop-
ular both in the national and in-
ternational markets. The company
was the first to get ISO 9001:2000
certificate for implementing the
latest international quality man-
agement system.
The bicycle industry in India
comprises two kinds of units: units
 Market Survey
manufacturing bicycle parts, com- More than 90 per cent of the bi- Engineering Export Promotion
ponents and accessories and units cycle production in India comes from Council functioning under the aegis
manufacturing complete bicycles. four bicycle companies, viz, Hero Bi- of Ministry of Commerce & Industry,
While bulk of the parts and com- cycles with a share of around 35 per government of India, over the years
ponents are manufactured in the cent followed by Atlas Cycles (24 per has been playing an important role
small-scale sector, complete bicycles cent), TI Cycles (18 per cent) and in promoting exports of bicycles and
are manufactured in the organised Avon (15 per cent). Hamilton Indus- bicycle parts and components in the
sector. Large cycle units are permit- tries, RMI Cycles and Cycle Corpora- international market.
ted to manufacture bicycle frames, tion of India are the other important AlI India Cycle Manufacturers
chains and rims for their captive bicycle manufacturing companies in Association (AICMA) is the national-
consumption. India. level body looking up the interests of
the bicycle industry.
Table I
World Exports of Cycles, Scooters (Motorised or Not) and World trade
Invalid Carriages by Major Countries
(US$ million) Exports by major countries.
Country 2002 2003 2004 2005 2006 Per cent growth in Data on the world trade of bicycles
2006 over 2005 and bicycle parts is not available
separately. However, the same has
Japan 5,834.4 6,114.4 7,226.1 7,770.8 7,899.5 1.66 been clubbed with product group
China 2,902.6 4,183.2 5,171.4 5,940.7 7,240.2 21.87 ‘cycles, scooters, motorised or not,
Italy 1,889.2 2,172.1 2,539.2 2,588.2 2,869.7 10.84 and invalid carriages,’ under the
USA 1,151.8 1,298.4 1,387.1 1,535.9 1,801.4 17.29 SITC Code 785, published by the
Germany 979.2 1,134.9 1,239.5 1,568.5 1,766.6 12.63 United Nations in their publication
Yearbook of International Trade Sta-
Belgium 848.8 981.9 1,172.4 1,235.0 1,271.9 2.99
tistics.
Spain 625.3 785.1 895.4 852.5 999.5 17.24 As may be seen from Table I,
France 553.3 762.9 928.1 930.6 993.8 6.79 world’s exports of cycles, scooters, etc
Netherlands 606.6 694.9 817.8 855.7 902.4 5.46 in 2006 registered an increase of 8.33
Thailand 368.2 464.1 635.9 776.7 889.9 14.57 per cent over the previous year when
World total 21,064.9 24,969.7 29,666.3 32,495.5 35,451.4 8.33 the same reached a level of $35,451.4
million as against $32,495.5 million.
Source: United Nations, Yearbook of International Trade Statistics, 2006 Japan over the years continues to be
the largest exporting country. How-
Table II ever, its exports during the period
witnessed a marginal growth of 1.66
World Imports of Cycles, Scooters (Motorised or Not) and
per cent. The other major exporting
Invalid Carriages by Major Countries
countries in 2006 were China, Italy,
(US$ million)
USA, Germany, Belgium and Spain.
Country 2002 2003 2004 2005 2006 Per cent growth in Significant export growth was wit-
2006 over 2005 nessed in the case of China (21.87
USA 4,526.3 4,971.4 5,634.1 6,369.6 6,459.7 1.41 per cent), USA (17.29 per cent),
Germany 1,812.9 2,045.5 2,204.5 2,565.5 2,715.7 5.85 Spain (17.24 per cent) and Thailand
(14.57 per cent).
France 1,338.4 1,840.9 2,195.8 2,551.6 2,298.2 (–) 9.93
Imports by major countries.
Italy 1,135.9 1,516.1 1,895.5 1,990.3 2,258.4 13.47 As may be seen from Table II, world
Spain 631.4 819.0 1,241.4 1,604.1 1,897.9 18.32 imports of cycles, scooters, etc reg-
Japan 1,021.9 1,214.8 1,322.8 1,349.8 1,435.2 6.33 istered an increase of 7.56 per cent
Belgium 902.4 1,134.9 1,450.3 1,585.4 1,432.0 (–) 9.68 over the previous year when the
UK 1,048.6 1,191.5 1,353.0 1,418.7 1,414.8 (–) 0.27 same shot up to $34,484.4 million as
against $32,061.3 million.
Netherlands 816.9 896.9 1,010.2 1,018.3 1,092.2 7.26
USA continued to be the larg-
Canada 625.1 765.0 769.5 912.6 993.0 8.80 est importing country. In 2006,
World total 20,761.4 24.409.9 28,745.6 32,061.3 34,484.4 7.56 it imported cycles, scooters, etc
Source: United Nations, Yearbook of International Trade Statistics, 2006 to the tune of $6459.7 million as
against $6369.6 million, registering
Market Survey
Table III a marginal growth of 1.41 per cent.
In 2006, Germany, France, Italy,
India’s Exports of Bicycles and Bicycle Parts and Spain, Japan and Belgium emerged
Components During 2003-04 to 2006-07 as the major importing countries.
(Rs crore) Imports showed an increasing
Item 2003-04 2004-05 2005-06 2006-07 Per cent growth in trend in respect of Spain (18.32 per
2006-07 over 2005-06 cent), Italy (13.47 per cent), Canada
Bicycles 201.36 168.33 111.68 133.69 19.71 (8.80 per cent), the Netherlands
(23.41) (21.08) (14.37) (16.18) (7.26 per cent) and Japan (6.33 per
cent).
Bicycle parts 658.89 630.15 665.52 692.81 4.10 On the other hand, imports
and components (76.59) (78.92) (85.63) (83.82)
dropped in the case of France (9.93
Total (all India) 860.25 798.48 777.20 826.50 6.34 per cent), Belgium (9.68 per cent)
(100.00) (100.00) (100.00) (100.00) and the UK (0.27 per cent).
Note: Figures within brackets indicate percentage shares of the total
Source: Compiled from the data of Directorate General of Commercial Intelligence & Statistics, Monthly Sta-
tistics of Foreign Trade of India, Volume I- Exports including Re-exports, March 2004, 2005, 2006 and 2007
India’s exports
issues, Calcutta Categorywise. As may be seen
from Table III, India’s exports of bi-

Table IV
Itemwise India’s Exports of Bicycles and Bicycle Parts and Components
During 2003-04 to 2006-07
(Rs crore)
Item 2003-04 2004-05 2005-06 2006-07 Per cent growth in
2006-07 over 2005-06
A. Bicycles
Bicycles 199.88 162.49 107.14 128.68 20.10
Other cycles: rickshaws, delivery
cycles, tricycles, toy cycles, etc 1.48 5.84 4.54 5.01 10.35
Total (A) 201.36 168.33 111.68 133.69 19.71
B. Bicycle parts and components
Other parts and accessories of bicycles 200.73 203.66 288.42 226.24 (–) 21.56
Bicycle hubs 38.11 33.67 28.71 54.92 91.29
Other hubs and brakings 100.06 85.36 67.64 52.19 (–) 22.84
Bicycle frames, forks and parts thereof 43.88 58.03 20.78 51.46 147.64
Pedals and crank gear and parts thereof 37.97 55.21 47.07 42.09 (–) 10.58
Other spokes and rims 68.89 23.12 27.87 41.81 50.02
Brakes including coaster braking hubs
and hub brakes and parts thereof 37.15 29.70 33.56 36.41 8.49
Bicycle freewheels 49.60 53.91 98.85 33.18 (–) 66.43
Bicycle rims 30.64 50.36 18.30 24.16 32.02
Bicycle chains 14.21 10.44 9.59 17.46 82.06
Bicycle saddles 9,88 7.67 5.09 12.74 150.29
Other saddles 11.84 4.68 10.15 5.17 (–) 49.06
Bicycle spokes 12.15 12.55 9.17 2.92 (–) 68.16
Bicycle wheels 3.78 1.79 0.32 1.33 315.63
Total (B) 658.89 630.15 665.52 692.81 4.10
Grand total (A+B) 860.25 798.48 777.20 826.50 6.34
Source: Compiled from the data of Directorate General of Commercial Intelligence & Statistics, Monthly Statistics of Foreign Trade of India, Volume I- Exports including
Re-exports, March 2004, 2005, 2006 and 2007 issues, Calcutta

cycles and bicycle parts in 2006-07 2005-06. Exports to Tanzania in the
registered a marginal growth of 6.34 year 2006-07 registered a significant
per cent over the previous year when growth of 21.50 per cent over the
the same reached a level of Rs 826.50 previous year. The other countries
crore as against Rs 777.20 crore. Bi- registering a steep growth comprised
cycle parts and components contin- Mozambique (46.81 per cent), Mala-
ued to hold a major share—83.82 per wi (14.64 per cent), Nepal (14.64 per
cent—in the total exports of bicycles cent) and Kenya (12.06 per cent). On
and parts. Complete bicycles, on the the other hand, the countries show-
other hand, accounted for a share of ing a steep decline comprised Sri
16.18 per cent in the year, register- Lanka (54.86 per cent), Egypt (35.79
ing a growth of 19.71 per cent over per cent), the UK (24.60 per cent),
the previous year. Nigeria (24.29 per cent) and Italy
Detailed data on India’s exports (19.10 per cent).
of bicycles and major bicycle parts Categorywise and countrywise
and components during the period India’s exports of bicycles and ma-
2003-04 to 2006-07 is shown in jor bicycle parts and components to
Table IV. major markets and select markets in
Countrywise. As may be seen the years 2005-06 and 2006-07 are
from Table V, in the year 2006-07, shown in Tables VI and VII.
Tanzania emerged as the largest
market for Indian bicycles and bicy-
cle parts and components, thereby
Recent developments
putting Nigeria in the second rank Battery-operated cycles. Avon
which happened to be the largest Cycles has launched the first bat-
market for Indian bicycles and bicy- tery-operated electric bike called
cle parts and components in the year ‘e-bike.’ e-bikes are eco-friendly,
pollution-free and
Table V fuel-free. These
India’s Exports of Bicycles and Bicycle save money, petrol
Parts and Components to Major and environment.
Countries During 2005-06 and 2006-07 The two-wheeler
(Rs crore) does not require
any licence, regis-
Country 2005-06 2006-07 Per cent growth
tration, insurance
Tanzania 55.22 67.09 21.50 and maintenance.
Nigeria 61.30 46.41 (–) 24.29 e-bike produc-
Kenya 40.55 45.44 12.06 es no noise, runs
smooth, is easy to
Mozambique 27.43 40.27 46.81
operate and con-
UAE 29.51 34.20 15.89 sumes very little
Uganda 35.15 31.79 (–) 9.56 energy. It has car-
Italy 33.03 26.72 (–) 19.10 rying capacity of up
Malawi 20.83 23.88 14.64 to 75 kg. e-bike has
Nepal 20.39 23.25 14.64 no kickstart, no en-
gine to fire up and
Egypt 27.83 17.87 (–) 35.79
no sound at idling
UK 21.46 16.18 (–) 24.60 and is equipped
Sri Lanka 27.25 12.30 (–) 54.86 with disk brakes. It
Ivory Coast 12.19 10.88 (–) 10.75 can be started with
Myanmar 15.79 10.55 33.19 the kick of the ac-
Total (all India) 777.20 826.50 6.34 celerator. Also, it
is very easy to re-
Source: Compiled from the data of Directorate General of Commercial Intel-
charge the battery.
ligence & Statistics, Monthly Statistics of Foreign Trade of India, Volume
I- Exports including Re-exports, March 2006 and 2007 issues, Calcutta The bike is avail-
able in assorted
Market Survey
colours.
Bicycle production in India.
India is the second largest producer
of bicycles in the world next only to
China. Hero Cycles based in Ludhi-
ana (Punjab) continues to be the
world’s largest manufacturer of bi-
cycles. While recently addressing
its Vendor Meet at Ludhiana, O.P.
Munjal, co-chairman and managing
director, Hero Cycles disclosed that a
total of 11 crore bicycles were manu-
factured around the world in 2000.
Over 50 per cent of the production
was done in China, India and SE
Asia. India made one crore bicy-
cles, of which 56 lakh bicycles were
manufactured by Hero Cycles alone.
Hero Cycles, he said, accounts for
about 5 per cent of world’s bicycle
production. To achieve its continued
growth plans, Hero Cycles would be
investing substantially in R&D.
Seminar on bicycles. A semi-
nar on ‘Bicycles and Components—
Standardisation’ was held on March
22, 2007 at Ludhiana. It was organ-
ised by Transport Engineering De-
partment of Bureau of Indian Stand-
ards. At the seminar, it was pointed
out that there is need to increase
participation in the formulation of
international standards to adopt
them as national standards without
any problem against the backdrop
of India being signatory to WTO
and a large exporter of bicycles and
components. The seminar created
awareness among industry circles
about the work relating to standards
being formulated by BIS both at the
national and international levels. It
recommended formulation of Indian
standards for manufacturing bicy-
cles and bicycle parts.
Bicycle makers’ concern over
rising steel prices. Major bicycle
manufacturers raised their concern
over the rising steel prices at the in-
auguration of the first ever focused
trade show on the bicycle industry,
Indo Bike Expo 2004, at New Delhi,
and urged the government to take
effective measures to safeguard the
interests of the industry. The indus-
try is facing stiff competition from
 Market Survey
cheap products being imported from search and Development Centre for United Nation Development Pro-
China. Bicycle and Sewing Machine, a Pun- gramme (UNDP), recently developed
Solar-powered rickshaw. Re- jab Government concern assisted by a rickshaw that harnesses solar pow-

Table VI
India’s Exports of Bicycles and Major Bicycle Parts and Accessories to
Important Countries During 2005-06 and 2006-07
Item/country 2005-06 2006-07 Per cent growth
Bicycles
Mozambique 16.11 28.15 74.74
Nepal 6.90 11.39 65.07
Tanzania 2.72 10.05 269.49
Congo P. Rep. 21.46 9.54 (–) 55.55
UAE 7.60 9.39 23.55
Kenya 8.68 8.54 (–) 1.61
Angola 4.42 5.48 23.98
UK 4.48 4.72 5.36
Malawi 4.62 4.70 1.73
Uganda 2.14 4.(-) 87.85
Germany 6.59 3.24 50.83
Ghana 1.84 3.13 70.11
Nigeria 5.34 0.50 (–) 90.64
Total (incl. others) 107.14 128.68 20.10
Other parts and accessories of bicycles
Tanzania 22.45 23.38 4.14
Nigeria 31.64 18.22 (–) 42.41
UAE 11.50 16.27 41.48
Kenya 18.72 15.76 (–) 15.81
Uganda 18.39 14.85 (–) 19.25
Egypt 13.15 8.52 (–) 35.21
Sudan 5.11 8.21 60.67
Ghana 3.79 6.30 66.23
Myanmar 7.37 4.84 (–) 34.33
Sri Lanka 8.59 4.37 (–) 49.13
Congo P. Rep. 11.13 4.34 (–) 61.01
Nepal 6.14 4.19 (–) 31.76
Argentina 7.90 4.17 (–) 47.22
Burkina Faso 8.92 2.26 (–) 74.66
Ivory Coast 6.08 1.64 (–) 73.03
Bangladesh 7.36 0.95 (–) 87.09
Total (incl. others) 288.42 226.24 (–) 21.56
Bicycle hubs
Italy 2.98 10.78 261.75
Tanzania 3.07 3.69 20.20
Indonesia 3.28 2.87 (–) 12.50
(Rs crore)
Item/country 2005-06 2006-07 Per cent growth
Argentina — 2.64 —
Ukraine 1.41 2.61 85.11
Mexico 1.39 2.18 56.83
Kenya 0.58 1.59 174.14
Malawi 0.57 1.25 119.30
Egypt 0.55 1.22 121.82
Myanmar 0.22 1.04 372.73
Total (incl. others) 28.71 54.92 91.29
Bicycle frames, forks and parts thereof
Tanzania 3.32 11.53 247.29
Kenya 2,28 6.17 170.61
Ghana 0.15 3.61 2306.67
Egypt 0.47 2.32 393.62
Togo 0.36 2.16 500.00
Uganda 1.06 2.16 103.77
France 0.51 2.14 319.61
Ivory Coast 0.71 1.75 146.48
Italy 0.71 1.24 74.65
UAE 0.79 1.10 39.24
Argentina 0.52 1.05 101.92
Total (incl. others) 20.78 51.46 147.64
Pedals and crank gear and parts thereof
Tanzania 4.33 5.35 23.66
Kenya 2.78 3.83 37.77
Nigeria 4.69 3.72 (–) 20.68
Togo 0.27 3.36 1144.44
Ghana 0.79 2.83 258.23
Sudan — 2.83 —
Malawi 0.90 1.83 103.33
Italy 3.98 1.70 (–) 57.29
Uganda 1.90 1.57 (–) 17.37
Egypt 3.30 1.55 (–) 53.03
Sri Lanka 1.74 0.52 (–) 70.11
France 1.94 0.28 (–) 85.57
Total (incl. others) 47.07 42.09 (–) 10.58
Total (all India) 777.20 826.50 6.34

Source: Compiled from the data of Directorate General of Commercial Intelligence & Statistics, Monthly Statistics of Foreign Trade of India, Volume I- Exports including
Re-exports, March 2006 and 2007 issues, Calcutta
 Market Survey
er. This rickshaw would be exported Nigeria and Kenya. in India, recently launched the lat-
free of cost to six African countries: Handy cycle. BSA Cycle, one est model of a bicycle under brand
Tanzania, Ghana, Zambia, Ethiopia, of the major bicycle manufacturers BSA Foldman. The company sources
say that it is India’s first ever light-
Table VII weight folding cycle. It can be folded
under three steps and stored any-
India’s Exports of Bicycles and Bicycle Parts where under the bed, under the car
and Components to Important Countries boot or even under the office table.
During 2005-06 and 2006-07 It is equipped with 6-speed gears and
(Rs crore) advanced suspension systems. This
Item 2005-06 2006-07 Per cent growth bicycle is available in motorcycle
outlets of Mumbai.
Tanzania
Promotion of bicycles. The
Other parts and accessories of bicycles 22.45 23.38 4.14 Draft National Urban Transport
Bicycle frames, forks and parts thereof 3.32 11.53 247.29 Policy aims at curtailing the use of
Bicycles 2.72 10.05 269.49 private transport vehicles and gives
Pedals and crank gear and parts thereof 4.33 5.35 23.56 impetus to public transport as well
Bicycle freewheels 4.05 3.69 (–) 8.89 as non-motorised vehicles like bicy-
cles. A slew of measures have been
Bicycle hubs 3.04 3.69 21.38
suggested in the policy to improve
Other spokes and rims 3.15 2.91 (–) 7.62 the use of public transport. To en-
Other hubs and brakings 4.40 1.68 (–) 61.82 courage the use of non-motorised
Bicycle chains 1.12 1.10 (–) 1.79 vehicles like bicycles, the policy sug-
Bicycle spokes 2.16 0.40 (–) 81.48 gests that sufficient safety measures
Total (incl. others) 55.22 67.09 21.50 must be provided. This will help to
increase the use of public transport.
Nigeria
Other parts and accessories of bicycles 31.64 18.22 (–) 42.41
Bicycles 5.34 8.54 59.93 Export outlook
Pedals and crank gear and parts thereof 4.69 3.83 (–) 18.34 On the whole, the future of the
Bicycle rims 2.09 2.32 11.00 Indian bicycle industry seems chal-
Other spokes and rims 2.67 1.84 (–) 31.09 lenging. Only those companies will
survive which successfully restruc-
Bicycle hubs 2.13 1.60 (–) 24.88
ture and modernise to achieve global
Other hubs and brakings 3.37 1.30 (–) 61.42 competitiveness in terms of quality,
Bicycle freewheels 6.43 0.60 (–) 90.67 cost and distribution system. The
Bicycle spokes 1.05 0.23 (–) 78.10 Indian bicycle industry needs latest
Total (incl. others) 61.30 46.41 (–) 24.29 research and development facilities
Kenya to match with world leaders like Chi-
na and Taiwan. For tapping export
Other parts and accessories of bicycles 18.72 15.75 (–) 15.87
potential, it needs to pay special at-
Bicycles 8.68 8.54 (–) 1.61 tention to R&D, designing and mar-
Bicycle frames, forks and parts thereof 2.28 6.17 170.61 keting. For promoting bicycles in the
Pedals and crank gear and parts thereof 2.78 3.83 37.77 domestic market, there is a strong-
Bicycle rims 1.56 2.32 48.72 felt need to give a special focus on
Other spokes and rims 0.85 1.84 116.47 the youth to change their mindset
by sensitising them to the concept of
Bicycle hubs 0.58 1.60 175.86
cycling. One way of doing it is to cus-
Brakes including coaster braking hubs tomise the product to the customer’s
and hub brakes and parts thereof 0.78 1.31 67.95 expectations apart from paying at-
Other hubs and brakings 0.85 1.30 52.94 tention to the comfort factor.
Total (incl. others) 40.55 45.44 12.06 
Total (all India) 777.20 826.50 6.34
Source: Compiled from the data of DGCI&S, Monthly Statistics of Foreign Trade of India, Volume 1, March The author was formerly a research
2006 and 2007 issues, Kolkata officer at the Indian Institute of Foreign
Trade, New Delhi