World Bicycle Day

Celebrated on 3rd June every year, World Bicycle Day is our reminder to choose the most efficient and environmentally friendly mode of transportation whenever possible. It is a day that highlights the importance of bicycles and promotes sustainable transport, improved fitness, and reduced carbon footprints.

In this article, let’s look at the history, trends, past performance, and future projections of the bicycle market in India.

Definition of Bicycle Market

The bicycle market comprises the industry as well as the activities taking place in or around producing, distributing and selling bicycles – manual or those assisted with electrical engines (e-bikes). It is important to note that this industry excludes the bike-sharing rental models; the sole focus is on the bicycles purchased for ownership.

The Journey Till Now

The industry began with the advent of Atlas Cycles (1951) and Hero Cycles (1956) – two of the first cycle manufacturing companies after India’s independence. By 1975, Hero Cycles became the largest bicycle manufacturer in India. In 1986, Hero Cycles Limited entered the Guinness Book of World Records as the world’s largest bicycle manufacturer. Soon, many other companies came up, such as TI Cycles of India, Atlas, Avon Limited, etc. With the rising demand for bicycles, the industry grew too.

Originally designed for transportation, the bicycle has also found space for other purposes like leisure, racing or physical exercise. As a result, different variants of bicycles came into existence such as gear bicycles, sports, mountain bikes etc.

Market Highlights

• The Indian bicycle industry is highly fragmented, with Ludhiana being the hub of manufacturing.
• According to the All-India Cycle Manufacturers’ Association (ACMA), the total bicycle sales touched 1,06,71,582 units in 2023-24 compared to 1,04,20,843 units in 2022-23.
• The recorded market size of bicycles in India was calculated to be USD 122.52 billion in 2024.
• The projected market volume by 2029 is estimated to reach USD 5.20 billion.
• With the current growth trajectory continuing, the projected CAGR (Compound Annual Growth Rate) for the period 2024-29 is estimated to be 6.25%.
• The estimated unit sales for bicycle market in India for 2029 is estimated to reach a total of 25.21 million units.
• The total manufacturing capacity in the bicycle industry is used majorly to satisfy the domestic demand. Only 5-7% of the total output is exported.
• The Indian bicycle industry is facing growing demands. The reasons for this mainly include factors such as heightened fitness consciousness, environmental concerns, traffic congestion, etc.

Top Players

Although fragmented, the top 10 companies of the bicycle industry take up almost 80% of the total market share. Let us take a look at them in brief:

1. Hero Cycles: Established in 1956 in Ludhiana, Hero Cycles is India’s largest bicycle manufacturer, producing 5.2 million cycles annually. With exports to over 70 countries and a robust product range including Hero Sprint and Firefox Bikes, the company is recognised globally and continues to expand, holding key stakes in international markets. This company holds almost 40% of the market share.
2. Tube Investments of India Limited: Tube Investments of India Limited, originally TI Financial Holdings, is a key player in the global bicycle and electric bicycle markets, producing over 18,390 cycles daily. With ventures like Firefox Bikes and Great Cycles in Sri Lanka, the company innovates and expands in the premium cycling segment, enhancing its global presence. This company covers up 22% of the market share.
3. Avon Cycles: Avon Group, established in 1951 and located on National Highway-1 near Ludhiana, is a leading manufacturer of bicycles and electric bicycles for both domestic and international markets. The company holds 17% of the market share.
4. Atlas Cycle Industries Ltd: Taking up almost 10% of the market share, Atlas Cycles (Haryana) Ltd began its journey in 1952. It grew from manufacturing bicycle saddles to becoming India’s second-largest cycle manufacturer, with a capacity of 3.1 million cycles annually. As India’s top bicycle exporter, it has expanded into new markets and innovated with products like the TANGO range and ‘Laser series’ bicycles.

Some other industries that sell bicycle parts include:

1. SRF Limited: SRF, renowned for its innovative approach, is the world’s second-largest producer of nylon 6 tyre cord fabrics and India’s first to create high-modulus low shrinkage (HMLS) polyester yarn for radial tyres. With three manufacturing sites in India, SRF won the Deming Prize in 2004 and supplies major Indian tyre companies.
2. Balkrishna Industries: Balkrishna Industries Limited (BKT), founded in 1961 and based in Mumbai, specialises in manufacturing Off-Highway Tyres (OHT) for sectors like agriculture and construction. With a significant global presence, BKT has expanded its operations through acquisitions and plant developments, with 77.89% of its revenue from exports and subsidiaries in Europe, the USA, and Canada.

Although historically, the Indian bicycle market comprised economically friendly bicycles, the market has expanded over time to offer international brands, resulting in the introduction of higher-end bicycles ranging from ₹15,000 to lakhs.

SWOT Analysis

Although the bicycle market holds a promising future, it is important to weigh the strengths and weaknesses before investing in this market.

Conclusion

Phew, that was quite a long journey that we covered! Take this day as an opportunity to learn more about the companies related to the bicycle sector. You can even go out for a ride on your bicycle and take this opportunity to get some fresh air and level up your health.

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Disclaimer: This article has been written for educational purposes only. The securities quoted are only examples and not recommendations.