The bicycle industry of Ludhiana has been hit hard due to import of cycle parts from China and overall export of the same has also fallen to Rs 600 crore during the last fiscal from Rs 850 crore. Bicycle industry is the backbone of Ludhiana industries and it is because of this reason that Ludhiana is known as ‘Manchester of India’. The global meltdown has also affected the growth of the bicycle industry.

A random survey of the industry reveals that Ludhiana has about 6,000 units, which daily manufacture 50,000 to 60,000 bicycles and the same also accounts for Rs 10 crore worth business. Besides, cycle parts worth Rs 15 crore are manufactured daily by this industry.

As a matter of fact, out of about 1.15 crore bicycles manufactured in India, 90% are produced in Ludhiana alone. This sector provides direct employment to about six lakh persons. About 3,000 units are engaged in cycle trade in this city and another 1,000 units are working as cottage industry.

Ludhiana based, Hero Cycles has the distinction of producing largest number of bicycles in the world and this record has not been broken for the past more than 25 years now.

Avtar Singh, General Secretary, Chamber of Commercial and Industrial Undertakings said that bicycle industry has worked to overcome the challenge and keep pace with the growing industrial and consumer sectors. But for the past four years since the steep rise in steel prices, the bicycle industry has received the major setback.

Last year, the steel prices spiked 55% with little margin of about 5% in bicycle industry as a result of which 25% have closed down their business. The crisis was further precipitated with cheaper import of the bicycles from China. The import from China in 2007 was worth Rs 400 crore which used to be just Rs 50 crore. A number of bicycle manufacturers have opened their offices in China and are making direct export to various countries from there. Some of the companies have closed their offices in Ludhiana, he said.

The major export markets for bicycles and cycle parts manufacturers are Gulf countries, Latin America and Africa. For the past more than six months, the demand from these countries has declined sharply. Avtar Singh has called upon the Union Government to immediately ban the import of bicycles and cycle parts from China and anti-dumping duty should be imposed on the same.

He further impressed upon the Central Government to give a stimulus to the bicycle industry on the pattern of TUF (Technological Upgradation Fund) as given to the textile industry and 5% interest reimbursement of the normal interest charged by leading banks on rupee term loan. In a letter to the Prime Minister and Commerce and Industry Minister, he has sought regulatory mechanism to control steel prices, at least on quarterly basis on the patron of petro prices.