Export of Bicycle's Components from India

[YAGAY andSUN]

Introduction:

India has emerged as a significant exporter of bicycle components, contributing to the global supply chain for the bicycle industry. The country’s well-established manufacturing infrastructure, skilled labor, and cost-effective production processes have made it a key player in the export of bicycle components. Bicycle components are essential parts that make up a bicycle, and India exports a wide variety of these components, ranging from frames, wheels, and tires to gears, pedals, and brakes.

The bicycle components industry in India has been growing steadily due to the increasing demand for bicycles worldwide, particularly in markets like Europe, North America, Southeast Asia, and Africa. The increasing global trend towards cycling as an eco-friendly mode of transportation, fitness, and recreational activity further drives the demand for bicycle components.

Key Bicycle Components:

Bicycle components are the individual parts that make up a complete bicycle. These components are manufactured in India and exported globally. The key bicycle components include:

1. Frames: The main structural component of the bicycle, usually made from steel, aluminum, or carbon fibre.
2. Wheels: Comprising the rims, spokes, and hubs, wheels are critical for the bike’s movement and performance.
3. Tires: Provide traction, cushioning, and support for the bicycle, and come in various sizes and types depending on the bike.
4. Brakes: Include rim brakes, disc brakes, and drum brakes, which are essential for controlling the bicycle’s speed and stopping it safely.
5. Gears and Shifters: Essential for adjusting the bike’s speed, gears are paired with shifters that control them, providing a range of speeds depending on terrain.
6. Pedals: Allow the rider to pedal and provide power to the bike. Pedals come in various designs, including platform pedals and clipless pedals.
7. Handlebars: Used for steering the bicycle and controlling the direction. Handlebar types vary based on the bike’s design (e.g., drop bars for road bikes, flat bars for mountain bikes).
8. Saddles: Provide comfort for the rider. They come in various materials and designs to suit different types of cyclists.
9. Chains and Chain sets: Transmit power from the pedals to the wheels, enabling the bicycle to move.
10. Suspension Systems: Used in mountain bikes and hybrid bikes, these systems absorb shock from rough terrain.
11. Hubs: The central part of the wheel where the axle is placed, and the rim and spokes are attached.
12. Lights and Reflectors: Used for safety, particularly in low-light conditions or on roads.

HSN Code:

The Harmonized System (HS) code for bicycle components generally falls under:

• HSN Code 8714: Bicycle parts, including frames, wheels, tires, brakes, pedals, saddles, gears, hubs, and other components.

Major Bicycle Components Manufacturers in India:

India has several prominent manufacturers of bicycle components that are globally recognized for their quality and reliability. These manufacturers produce a wide range of bicycle parts catering to both domestic and international markets. Key manufacturers include:

1. Hero Cycles Ltd.: Apart from bicycles, Hero Cycles is also a major manufacturer of bicycle components such as frames, wheels, and gears.
2. TI Cycles (Sundaram Clayton Ltd.): Known for manufacturing quality bicycle parts, including frames, hubs, tires, and gears under the BSA and Hercules brands.
3. Jagatjit Industries Ltd. (Bicycle Parts): Manufacturer of various bicycle parts, including wheels, pedals, tires, and chains.
4. Laxmi Trading Company: A leading exporter of bicycle parts such as hubs, pedals, and wheels.
5. Bajaj Industries: Produces a wide range of bicycle components such as chains, gears, and brakes.
6. Sonalika Industries: Manufacturers of bicycle parts, including wheels, hubs, tires, and other essential components.
7. R. R. Industries: Known for producing quality bicycle components like frames, pedals, and handlebar sets for both domestic and international markets.
8. Shimano India: A subsidiary of the Japanese brand Shimano, producing high-quality components like gears, shifters, and brakes for export.

Key Export Destinations:

India exports bicycle components to a variety of countries, including both established and emerging markets. The key export destinations for Indian bicycle components include:

• Europe: The European market is a major importer of bicycle components, especially in countries like Germany, the UK, the Netherlands, and France. Europe’s growing interest in cycling for transportation, fitness, and recreation drives the demand for high-quality components.
• North America: The United States and Canada are key markets for bicycle parts, with demand fueled by the popularity of cycling, particularly in urban areas.
• Southeast Asia: Countries like Indonesia, Malaysia, and the Philippines have a growing demand for bicycles and bicycle components due to increasing adoption of bicycles for transportation and fitness.
• Africa: With a large population using bicycles as a primary means of transportation, countries like Kenya, Nigeria, and South Africa import significant quantities of bicycle components.
• Middle East: Countries like Saudi Arabia, UAE, and Oman are emerging markets for bicycle components due to the growing interest in outdoor activities and cycling.
• Latin America: Brazil, Mexico, and Argentina are key markets where demand for bicycles and parts is on the rise, particularly in urban areas.

Export Performance:

India's export performance in the bicycle components sector has been positive due to several factors:

• Cost-Effective Production: India offers cost-effective manufacturing solutions, making its bicycle components competitive in international markets.
• Wide Range of Products: Indian manufacturers produce a wide variety of bicycle parts, catering to different market segments, from low-cost components to high-end, specialized parts.
• Increasing Global Demand for Bicycles: With the growing popularity of cycling, especially for commuting, fitness, and recreation, there is an increasing demand for bicycle components worldwide.
• Skilled Workforce: India’s skilled workforce in manufacturing and engineering contributes to the high-quality production of bicycle parts that meet international standards.
• Strong Domestic Bicycle Market: The domestic bicycle industry is well-established, providing manufacturers with the expertise and infrastructure to support their export operations.

Export Incentives:

India’s government provides various incentives to encourage the export of bicycle components, including:

1. Advance Authorization (AA): This allows bicycle component manufacturers to import raw materials and components duty-free, which are then used in the production of export goods.
2. Export Promotion Capital Goods (EPCG): This scheme allows duty-free imports of capital goods used in manufacturing bicycle components for export.
3. Duty Drawback Scheme: Manufacturers can receive refunds on the customs duties paid on raw materials used in the production of exported bicycle components.
4. Remission of Duties and Taxes on Export Products (RODTEP): The RODTEP scheme helps Indian exporters by refunding indirect taxes and duties on bicycle components exported.
5. Interest Equalization Scheme: This provides export financing at reduced interest rates to bicycle component manufacturers.
6. Market Access Initiative (MAI): The government provides support for promotional activities to help Indian bicycle component exporters expand into new international markets.

Governing Bodies, Export Promotion Councils, and Trade Organizations:

• Federation of Indian Export Organizations (FIEO): Supports exporters of bicycle components by providing trade facilitation, policy advocacy, and market intelligence.
• Automotive Component Manufacturers Association of India (ACMA): Represents Indian manufacturers of bicycle parts and components, working to enhance their competitiveness in international markets.
• Bicycle Manufacturers’ Association of India (BMAI): An industry body representing bicycle manufacturers and suppliers of bicycle components in India.
• Ministry of Commerce & Industry: The government body responsible for formulating policies and regulations to support the export of bicycle components.

Government Initiatives:

• Make in India: This initiative encourages the domestic manufacturing of products like bicycle components, enhancing India’s position as a key supplier in global supply chains.
• Atmanirbhar Bharat: Focuses on strengthening domestic manufacturing and reducing reliance on imports, which also applies to the bicycle components industry.
• National Bicycle Policy: The government’s efforts to promote cycling and increase the domestic production of bicycles and their components, which in turn boosts exports.

Challenges:

1. Competition from Low-Cost Manufacturers: India faces stiff competition from countries like China, which offer lower production costs for bicycle components.
2. Fluctuating Raw Material Prices: The cost of steel, aluminium, and other raw materials can fluctuate, impacting the pricing of bicycle components.
3. Quality Assurance: Maintaining consistent quality in bicycle components is crucial for meeting international standards and gaining customer trust.
4. Export Barriers and Tariffs: Some foreign markets have high tariffs or trade barriers that can make Indian bicycle components less competitive.

Way Forward:

1. Focus on High-Quality, Specialized Components: Indian manufacturers can target niche markets by producing high-quality, specialized bicycle components, including carbon fibre frames, precision gears, and advanced braking systems.
2. Embrace Technological Advancements: By incorporating advanced technologies, such as 3D printing for manufacturing parts, Indian exporters can stay ahead of global competition.
3. Diversification into New Markets: Indian bicycle component manufacturers should explore emerging markets in Southeast Asia, Africa, and Latin America, where demand for bicycles and parts is growing.
4. Sustainability Initiatives: By adopting environmentally sustainable manufacturing practices, Indian manufacturers can appeal to global markets that prioritize eco-friendly products.

Conclusion:

The export of bicycle components from India presents significant growth opportunities, driven by increasing global demand for bicycles and their parts. With a cost-effective manufacturing base, skilled workforce, and a focus on quality, India is well-positioned to strengthen its role as a major supplier of bicycle components worldwide. By focusing on innovation, diversification, and sustainability, India’s bicycle component industry can continue to expand its export potential and contribute to the global bicycle supply chain.