Cycle traders propose curbs on parts imported from China

LUDHIANA:After Hero Cycles cancelled its ₹900-crore deal with China just three months before schedule, other cycle traders as well as parts manufacturers in the industrial hub have decided to reduce reliance on the country for imports.

Focussed on boosting indigenous component manufacturing, All India Cycle Manufacturers Association (AICMA) has sent a list of parts, currently being imported from China, to the government proposing the same to be placed under the restricted category.

Putting goods under restricted category implies that an importer would require a licence or permission from Directorate General of Foreign Trade for imports.

The cycle industry in Ludhiana is dependent on China for the import of multi-speed gears, alloy frames, steel rims, reflectors, brakes among others.

According to AICMA president and Avon Cycles owner Omkar Singh Pahwa, they have sent a list of components like reflectors, alloy rims etc to the government proposing these be put under the restricted category.

“The government has recently imposed curbs on imported tyres used in bicycles, which is a good decision. Similarly,

we have sent a list of cycle components being imported from China to the government which can be placed under the restricted category. This will increase focus on manufacture of indigenous goods, reducing reliance on China. However, it’s a long road ahead,” he said.

United Cycle Parts Manufacturers Association president DS Chawla said Indian imports 7 lakh cycles from China annually, including components for high-end cycles worth hundreds of crores. “Cycle traders are contemplating cancelling deals and orders with China and are exploring alternatives,” he said.

Earlier, Hero Cycles chairman Pankaj Munjal had stated that they were localising manufacture of cycle parts and components in a phased manner. The company has cancelled a ₹900crore deal with China which it was to execute in the next three months.

THE CYCLE INDUSTRY IN LUDHIANA IS DEPENDENT ON CHINA FOR THE IMPORT OF MULTI-SPEED GEARS, ALLOY FRAMES, STEEL RIMS, REFLECTORS, BRAKES AMONG OTHERS