Bicycle industry set to pedal in a decadal high growth of 20% as Covid spurs demand

NEW DELHI: Riding high mainly on the pandemic-driven pent-up demand, the domestic bicycle industry may see a decadal high growth of 20% this fiscal, according to a report.

Amid this, the bicycle sales volume is expected to touch 1.45 crore units compared with 1.2 crore units last fiscal, ratings agency CRISIL said.India is the second-largest manufacturer of bicycles in the world with the industry classified into four segments - standard, premium, kids and exports.

Demand for standard bicycles, which is the largest segment (accounting for half of all bicycles sold in 2020), is driven by government purchases, which are made through a tender process and distributed under various welfare schemes, it said.

Demand for premium and kids bicycles, with market size at nearly 40%, is driven by fitness and leisure needs. While exports and

sales of other kinds of bicycles constitute the remaining 10% of the demand, it said.

However, this estimate is only for the organised segment volumes, which roughly account for three-fourths of the total industry volumes, CRISIL said.

The ongoing COVID-19 pandemic has spurred demand for bicycles, owing to improving fitness consciousness and leisure requirements, it said.

"The pandemic-induced constraints on fitness and leisure options increased the demand for bicycles, especially in the premium and kids segments.

"Strong growth in these limited the overall decline in sales volume to just 5% in fiscal 2021 despite a further reduction in government purchases," CRISIL Ratings Director Nitesh Jain said. The momentum is likely to continue this fiscal also, given the ongoing second wave of the pandemic, and should lead to a 22% growth for the premium and kids segments, Jain said.