The economic slowdown has dragged down auto sales, but cycle sales are on a rise, thanks to increasing awareness among consumers regarding the benefits of green mobility. Cycle manufacturers like Tata Stryder are expecting this momentum to double their sales over the next three years.
“The industry is far more resilient to a slowdown, compared to the auto sector. We have witnessed CAGR of 10 per cent. Going forward, we are expecting to double our sales in the next three years,” Rahul Gupta, Business Head, Stryder Cycle said. The company is also planning to set up a new plant in Ludhiana, which will be fully operational in the next nine months. Stryder Cycle is a 100 per cent subsidiary of Tata International.
And while the kid’s cycle segment is still the one growing the fastest, products meant for adults are fast catching up. The company, which is currently at number five in terms of domestic sales, has a roadmap to fast catch-up with the competition.“We are working on a new type of steel, in collaboration with Tata Steel, which is more durable and at the same time lighter. This will be available by the first half of the new fiscal year. We are already working on the design parts. We have tied up with a design consultant, which will help the company to develop more attractive models, especially for the youngsters. We are also working to re engineer our brand from April 1,” Gupta added.
The company, which is already exporting to SAARC countries like Bangladesh and Nepal, is also in an advanced stage of a deal to tie up with a European bicycle brand. But, Gupta laments that despite the government putting so much focus on promoting green mobility and electric vehicles, taxes on bicycles are very high, making them more expensive.
“Bicycles are the cleanest mode of transportation and they are healthy too. No petrol, no need to charge and pocket-friendly. They also help in decongesting our cities. I feel the government should promote it, if they are interested in promoting green mobility. Currently, there is GST at 12 per cent, which needs to be reduced,” Gupta added.
New Ludhiana facility
The company is planning to set up a new plant in Ludhiana, which will be fully operational in next nine months. While the kid’s cycle segment is still the one growing the fastest, products meant for adults are fast catching up. The company also has a roadmap to draw level with the competition.
