Latest News | Supply Constraints Facing Bicycle Industry to Normalise in Six to Eight Months: Ahoy Bikes

New Delhi, Feb 10 (PTI) Bicycle maker Ahoy Bikes expects supply constraints facing the industry following a boom in demand in the aftermath of the coronavirus pandemic to normalise in the next six to eight months as local component makers develop parts that were never manufactured in the country, according to a senior company official.

The company, which on Wednesday launched its new range of bicycles equipped with electroluminescent technology with price starting from Rs 20,000, is bullish that after the economy's opening up post the lockdown, demand for bicycles will continue to be robust.

"Sales are good. Demand is good, but the problem is in the production of bicycles as of now...we do not have material with us. We are struggling with the inventory part," Ahoy Bikes Director Abhishek Mitra told PTI.

The constraint is with the overall parts, not just one component. The industry was not ready to meet such a massive boom in demand, he added.

When asked how long the supply constraints are expected to continue, Mitra said, "In the long term, in six to eight months, the whole thing will normalise. This will take some time for the whole industry as our friends in the industry are developing products which were never developed in India."

Specific to the company, he said, "At the production facility that we have in Delhi-NCR, we are producing 12,000 bicycles a month as of now. We can scale this up to 20,000 units a month but because of supply chain issues we are lagging a little bit behind."

"The problem now is we do not have material with us. We are struggling with the inventory part," he added.

Ahoy Bikes has consciously decided to focus on locally made parts to promote self-reliance and not depend on cheap imported factors from China, he added.

On the demand side, he said, just like what happened in Europe post lockdown when bicycle demand soared by 400 per cent, "India also saw something like that."

The segment that saw the highest spike in demand were the kids segment and middle-aged group, Mitra said adding bicycles became an outlet to play safely by maintaining social distancing for kids who were confined to their respective homes during the lockdown.

Similarly, for middle-aged health conscious people who have ridden bikes and driven cars were also seen coming back to bicycles with gyms closed for a long period.

Citing All India Cycles Manufacturers Association data, the company said the industry was growing at 5-7 per cent every year, but because of the coronavirus pandemic, it is now expected to grow at 15-20 percent, led by a surge in first-time users.

"We want to leverage the growing demand and excitement of cycling as it has all potential to become much more than a sport or fitness activity in the country," Ahoy Bikes Business Head Sandeep Sinha said.

Commenting on the company's new range of electroluminescent bike, Mitra said it has a paint-like coating system that emits light when an electric current is passed through this, helping in the improved visibility of the bicycle from a distance and thus enhancing the safety of the rider.

Most of the accidents involving bicycle riders are due to poor visibility, he added.

While the price of the electroluminescent bike starts from Rs 20,000, he said the company is also offering customization options for existing bicycle riders of any brand to have the coating on their bicycles with prices starting from Rs 7,000.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)