The trend will encourage SMEs to focus on R&D and also lead to increased profit margin. The manufacturers' position in the global market will also be consolidated. More than 2,000 bicycles parts manufacturers in Ludhiana who supply to the manufacturers are also expected to benefit.
India is the second-largest bicycle manufacturer in the world with 12 million bicycles made annually. Ludhiana, Punjab, manufactures more than 65 per cent of the total bicycles. The Ludhiana bicycle industry is also into the export of bicycles and spares.
The city houses famous bicycle makers like Hero, Avon, Neelam etc.
Speaking to Business Standard SK Rai, managing director, Hero Cycles, said: "The demand for fancy bicycles is witnessing double-digit growth. Earlier, the market share of fancy cycles was low because people had few options, but now people have more options."
Hero has a production capacity of about 5.5 million bicycles per annum and manufactures 35-40 per cent of the country's production. In the last fiscal, it sold 1.6 million fancy bicycles compared to 1.2 million bicycles in the corresponding period previous year. The company is producing an entire range of fancy bicycles called