Make In India is not working for Hero Cycles
Hero Cycle, India’s biggest cycle brand is shifting manufacturing of its cycle to Bangaldesh. India is South Asia’s biggest cycle market and iron ore producer.
Dominant roadster bicycles’ market share is coming down in India. Roadster bicycles sell between INR 2500 and INR 4000. The current market share of roadster bicycle is about 55%. Fancy cycles have the rest 45% of the market share. Fancy cycles sell for more than INR 400 up to INR 10 lakh. While roadster bicycles are manufactured in India, fancy cycles are manufactured outside of India such as Bangaldesh, Thailand and Srilanka.
Meanwhile, the ‘fancy’ segment, armed with better features, has been growing faster — and will continue to grow — due to rising aspirations and health or fitness considerations among the urban populace, said Thakur.
Local cycle brands are unable to upgrade the cycle manufacturing in India due to labour laws and manufacturing policies. Hero Cycles acquired Firefox, which manufactures its cycles in Bangaldesh.
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