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Cheap Chinese Components for Bicycle Exporters

Industry- & Retail Organizations

LUDHIANA, India – The lure of cheap bicycle components has been leading Indian bicycle traders to China, from where they are sourcing material for exports to countries in Africa and the Middle East. “At least five bicycle and bicycle parts exporters have opened their offices in China and several other merchant exporters have now been […]

LUDHIANA, India – The lure of cheap bicycle components has been leading Indian bicycle traders to China, from where they are sourcing material for exports to countries in Africa and the Middle East.
“At least five bicycle and bicycle parts exporters have opened their offices in China and several other merchant exporters have now been contemplating on the same lines,” the Engineering Exporters Association of India president, Mr Rajinder Jindal said on Monday.
Since Chinese bicycles are 40% cheaper than those manufactured in India, the traders view it as a source for inexpensive material, which could be used for export purposes, he said.
According to Rajinder Jindal, the bicycle and bicycle parts exporters who have set up their offices in China are Sadem Industries, Deepak International, Eastman Industries, Unistar Exports and Deol cycles. Many others are thinking of opening offices in China.
While the shift would hit Indian bicycle component manufacturers, exporters pointed out that the new duty drawback rates back at home was one of the reasons why they were forced to look towards China for sourcing components.
“The new duty drawback rates have dealt a severe blow to bicycle exports, causing a fall of more than 50 % in bicycle exports between May and June,” said Satish Dhanda, of the Engineering Export Promotion Council.

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