Colouring cycles would increase mfg cost by Rs 150: Ludhiana manufacturers
Updated: Jun 17, 2015 01:48:56pm
Ludhiana, June 17 (KNN) Government’s decision to paint the bi-cycles in yellow or orange colour has not gone well with the cycle manufacturers, as they feel the decision is “unnecessary” and will put additional pressure on the units. The bicycle industry has urged the government to reconsider the decision.
The manufacturers are of the view that instead of focusing on such “uncalled for” measures, the government should rather give impetus to the long pending demands of the cycle industry and take measures to handhold the manufacturers in getting the high-end technology to make hi-tech cycles.
“Government has taken the decision in a bid to increase the visibility of the cycles, but we already put the reflectors and stickers on the cycles which are sufficient. What lags in India is a cycle lane, which would increase to safety of the riders,” Gurmeet Singh Kular, Managing Director, Kular International told KNN.
Kular, who is also the President of the federation of industrial and commercial organizations, said the move would further put pressure on the manufacturers as the cost of manufacturing would go up by at least Rs 150.
There are around 3000-4000 micro or small scale units with annual production of million bicycles.
The Indian bicycle industry has a major cost disadvantage over neighbouring China. China has an advantage over India in terms of cost of capital, cost of power, duty drawback and freight subsidy. Chinese cycle prices, as a result, are at least 15 per cent lower than those of Indian cycles.
China produces 1.3 crore cycles per year, while India produces 10-15 crore cycles per year. India is the world’s second largest bicycle manufacturer after China, the size of the Indian bicycle industry worth USD 1.2 billion.
The global bicycles market is worth USD 61 billion. As many as 130 million bicycles are sold every year globally and 66 per cent of them are made in China. China is believed to be producing two out of every three bicycles made globally.
“We don’t have the technology to manufacture the high-end cycles like China. We have been urging the government to handhold us and provide technology to us to become globally competitive, but nothing has been done so far,” Kular, General Secreatary of Bi-cycle Research & Development Organization, said.
Even if we want to manufacture the high-end cycles here, we do not have the raw materials, other facilities for it, he added. (KNN Bureau)
The manufacturers are of the view that instead of focusing on such “uncalled for” measures, the government should rather give impetus to the long pending demands of the cycle industry and take measures to handhold the manufacturers in getting the high-end technology to make hi-tech cycles.
“Government has taken the decision in a bid to increase the visibility of the cycles, but we already put the reflectors and stickers on the cycles which are sufficient. What lags in India is a cycle lane, which would increase to safety of the riders,” Gurmeet Singh Kular, Managing Director, Kular International told KNN.
Kular, who is also the President of the federation of industrial and commercial organizations, said the move would further put pressure on the manufacturers as the cost of manufacturing would go up by at least Rs 150.
There are around 3000-4000 micro or small scale units with annual production of million bicycles.
The Indian bicycle industry has a major cost disadvantage over neighbouring China. China has an advantage over India in terms of cost of capital, cost of power, duty drawback and freight subsidy. Chinese cycle prices, as a result, are at least 15 per cent lower than those of Indian cycles.
China produces 1.3 crore cycles per year, while India produces 10-15 crore cycles per year. India is the world’s second largest bicycle manufacturer after China, the size of the Indian bicycle industry worth USD 1.2 billion.
The global bicycles market is worth USD 61 billion. As many as 130 million bicycles are sold every year globally and 66 per cent of them are made in China. China is believed to be producing two out of every three bicycles made globally.
“We don’t have the technology to manufacture the high-end cycles like China. We have been urging the government to handhold us and provide technology to us to become globally competitive, but nothing has been done so far,” Kular, General Secreatary of Bi-cycle Research & Development Organization, said.
Even if we want to manufacture the high-end cycles here, we do not have the raw materials, other facilities for it, he added. (KNN Bureau)
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