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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