New Delhi: 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.

“While on the one hand, we are witnessing a surging demand for bicycles and e-bikes; on the other hand shortage of raw material and components is turning out to be a major hurdle for all bicycle manufacturers in India. This has resulted in increased waiting times for customers, particularly for high-end bicycles. In this situation, we urge the Government to provide active support to the bicycle sector to be able to overcome these challenges. Firstly, we need all freight train movement to Punjab to resume completely allowing us access to raw materials. Secondly, the bicycle sector needs Government support in localising component manufacturing and reducing dependence on foreign supplies particularly from China,” said Mr. Pankaj M Munjal, Chairman and Managing Director, HMC, a Hero Motors Company.

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.

“The Government must support this endeavour initially through fiscal and non-fiscal measures until the sector develops robust manufacturing capacity of its own. A favourable duty structure and support for R&D and innovation is key. The government must also create a conducive and business-friendly environment and ensure ease of starting and conducting business to attract global component manufacturers to establish facilities in India” added Mr. Munjal.

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.