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Bicycles, Viz, Sports By: G.P Market Survey new models of bicycles, viz, sports BY: G.P. GANDHI 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- BICYCLES: CAN INDIA ing exports. Modern machines and equipment are being installed and even quality control programmes CATCH UP WITH CHINA? are being instituted. An R&D centre was set up in the 1980s at Ludhiana, which gave a push to the use of im- The Indian bicycle industry needs latest R&D facilities to proved technology. Ludhiana in Punjab is popularly match with world leaders like China and Taiwan. 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- icycles continue to be the designs, colours and features. Today, ports bicycles and bicycle parts to principal mode of trans- the Indian bicycle manufacturing more than 50 countries all over the port for the low- and and bicycle parts industry is widely world. Atlas bicycles are more pop- middle-income families. recognised for its quality standards ular both in the national and in- This is because the bicy- in the international market. ternational markets. The company Bcle is both environment- and people- Considering the rising fuel costs was the first to get ISO 9001:2000 friendly. and pollution, the bikes are consid- certificate for implementing the India is the largest producer of bi- ered ideal. These can be maintained latest international quality man- cycles next only to China. It produces at low costs. agement system. around 1.25 crore bicycles every year, The Indian bicycle industry over The bicycle industry in India with almost each day witnessing new the years has introduced a variety of 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.
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