Ludhiana:
After experiencing a significant boom during the post-pandemic period, the bicycle industry is currently facing a tough time with single day production reduced by over 50000 cycles.
According to the industrialists, during the post-pandemic period in 2021-22 there was a boom in the market with single day production increasing to 1.25 lakh cycles but now for the past around three years, the production has dipped to around 70000 cycles per day.
“The market has now become stagnant and if nothing is done to push the industry, the production will further dip,” expressed industrialists from Ludhiana.
Charanjit Singh Vishivkarma, Chairman, United Cycle & Parts Manufacturers Association, highlighted several issues plaguing the industry. He explained that during the boom, around 150 new companies/ brands entered into the market and they compromised on quality by using sub-standard components to reduce the cost. As a result, consumers shifted their preference toward these cheaper alternatives, adversely impacting established manufacturers.
Another major concern raised by Vishivkarma is the issue of under-invoicing. He stated that several new companies are involved in this unethical practice, further distorting the market and making it difficult for genuine manufacturers to compete. To address this issue, he called for strict action against under-invoicing to create a level playing field in the industry.
Additionally, he urged the government to reduce the Goods and Services Tax (GST) on bicycles to 5% on an immediate basis. According to him, lowering the GST would encourage proper billing and promote the overall growth of the business.
Despite the government’s efforts under the Make in India initiative, Vishivkarma pointed out that the industry continues to face competition from cheap Chinese imports. Many key components are still being imported from China at significantly lower costs, which negatively impacts domestic manufacturers. He stressed the need for imposing restrictions or capping imports to support local industries and ensure sustained growth.
MP Arora advocates for a uniform GST rate of 5% to support bicycle industry
Rajya Sabha MP from Ludhiana, Sanjeev Arora, on Friday raised concerns about the challenges faced by the bicycle manufacturing sector across the country in the budget session of Rajya Sabha.
In his address, Arora highlighted the significance of bicycles as the most healthy, environment-friendly, and widely accessible mode of transportation. He stressed that the industry is experiencing tough times and urged the concerned ministries to address key issues at the earliest.
Regarding the GST structure for bicycles and their components, Arora pointed out that bicycle parts currently attract 18% GST, non-electric bicycles 12%, and electric bicycles 5%. He stated, “The fragmented GST structure burdens manufacturers, discourages domestic production, and creates unnecessary financial hurdles.” He advocated for a uniform GST rate of 5% to promote the growth of this sustainable mode of transport. Additionally, he emphasised that bicycles designed for differently-abled individuals should be exempt from GST entirely, with the reduced rate applicable from parts to final production.
Arora also demanded the renewal of the Bicycle Development Council (BDC), a crucial inter-ministerial body under the DPIIT, Ministry of Commerce, whose renewal has been pending since 2021. He highlighted that the delay is hampering strategic growth and innovation within the sector.
Reiterating the importance of bicycles, Arora stated that they are not only an affordable means of transport but also play a vital role in sustainability and public health. He urged the government to urgently address these issues, streamline projects, and facilitate the industry’s growth for the benefit of the nation.