1.BICYCLE MARKET IN INDIA WRT THE WORLD 2.INTRO ON MARKETS WITHIN INDIA 3.

PRODUCTION AND REVENUE SHARES-PIE CHARTS 4.TRENDS IN DEMAND AND SUPPLY:BRAND DEPENDANCE. 5.EFFECTS OF RECESSION ON CYCLES-CARS DOWN,CYCLES UP.

The size of the Indian bicycle industry stands at US $1.2 billion. The number of units (finished bicycles including all segments) produced is around 12 million, according to an industry source. Of this, the number of units exported annually is about two to three million, which points to a huge demand in the domestic market. According to figures from the Engineering Exports Promotion Council, in 2007-08 India exported bicycles and components worth US $185.42 million. Quick Facts India is the second largest manufacturer of bicycles in the world, with 12 million units annually, producing approximately 10% of the world annual bicycle production, which is estimated at 125 Million units. Big players in this business have the license to manufacture both bicycle frames and components, while small-scale manufacturers dominate the components market that includes pedals, chains, carriers, nuts and bolts, levers, tires and tubes, spokes, axles and mudguards.

China makes two out of every three units made globally. That is a huge 66%! Hero Cycles is the LARGEST bicycle manufacturer in the WORLD. Major exports are to the Middle East, Africa, the US, and Latin America. A bicycle dealer in Patna, Bihar, sells around 10,000 bicycles in a month. In 2007-08 India exported bicycles and components worth US $185.42 million.

Exports out of India are largely to Africa and the less developed economies and negligible to western markets.

F ACTORS INFLUENCING DEMAND FOR BICYCLES IN INDIA FOR AGAINST

Huge demand in rural India and small towns Childrens segment Government schemes for school-going poor children Increasing health/fitness consciousness in urban areas Requirements for zero-emission solutions for Increasing demand/popularity of motor bikes Rise in migration to cities Long commutes to work in big cities No dedicated cycle tracks in cities High risk involved while commuting

polluted traffic routes Events to boost bicycle usage in India India as a low-cost manufacturing hub Higher density of suppliers and dealers Low awareness of cycling as a sport in India Lack of funds for expansion of facilities High costs involved in setting up quality manufacturing units Competition from China and other low-cost manufacturing destinations Rising prices of raw material such as steel and rubber

the inside story.

S UPPLIERS :
The Indian bicycle market comprises four major playersHero, TI, Avon, and Atlaswho also export to the Middle East, Africa, the US and Latin America. Most of the big players started operations between the mid1940s to mid-1950s. The oldest and the largest one, Hero Cycles from the stables of the Hero Group, started as early as 1944, but stabilized its production only after 1956. It has a 48% market share in the Indian bicycle industry. Annual sales volume of over 4.8 million makes it the largest bicycle manufacturer in the world. Hero Cycles rolls out around 18,500 units every day. Ludhiana is the hub for bicycle manufacturing in India. More than 25,000 cycles per day are manufactured in Ludhiana alone. The city is home to over 1,500 factories making bicycles and components, providing employment to 0.25 million people and today it is a jewel in the crown of Indias industrial cities.

Major players in the domestic bicycle industry aka Hero Cycles, TI, Avon & Atlas have 40%, 22% & 17% & 10% of share of volume respectively.

HERO TI AVON ATLAS OTHER

T HE DEMAND SCENARIO :
The annual domestic demand of bicycles in India is approximately 10 million units out of which around 2.5 million units is a government demand for the various welfare schemes.Most cycles manufactured & sold in India are in the low price bracket of Rs. 2,500 to 3000.The market for the premium or the lifestyle bikes targeted towards the lifestyle consumer is just about emerging. The definition of high end bikes it self is changing. Earlier the high-end bikes were considered as those selling between Rs. 5000 to 8000. However now with global brands moving into the country this definition is also changing with price-points starting from Rs.15000 to as high as a few lakhs! Not only are the price points changing but even definition of the segment are. Hitherto, cycles were simplistically segmented into gents, ladies, kids and high end. But now the lifestyle bikes are being segmented in line with the global trend that is based on their usage. There are Road bikes, Mountain bikes, Tourers, Hybrids, BMX to name a few. Virtually all the

big names are present in the country like Giant, Trek, Merida, and Canondale etc. The demand for these cycles at this stage is very limited but is set to grow at a frenetic pace in future. While the mass-market segment is experiencing a sluggish growth of between 4-6% annually the premium & lifestyle segment is growing at a CAGR of over 30%. The market size for the lifestyle cycles is estimated at not more than 0.25 million units annually but its only time that this segment will form an important part of the industry .

EFFECT OF RECESSION :
Cars Down, Bikes Up

While high oil prices and an economic recession are hitting carmakers hard, bicycle makers are selling more than ever.