Asia Bicycle Alliance Conference Started in India
CHANDIGARH, India – Earlier today the 2nd Asia Bicycle Alliance Conference kicked off for its 2-day event in India’s Punjab city of Chandigarh. Here delegations from 14 countries, including Europe, are discussing “Emerging Trends, Challenges & New Vision of the Bicycle Industry In Asia Pacific.”
Representatives from Confederation of the European Bicycle Industries (CONEBI) are also taking part in the 2-day Conference. Vice President Erhard Büchel of CONEBI and CEO of Büchel GmbH & Co will do a presentation here named “Insights of the European Markets.”
Simultaneously with the Asia Bicycle Alliance Conference the ‘Bicycle ExCon’ is being organized. At this exhibition a welcome party was organized for all delegation members by the India bicycle industry. India’s four leading bicycle manufacturers, Hero, TI Cycles, Avon and Atlas participate in Bicycle ExCon as well as companies like Giant and Phoenix.
Entering Indian bicycle market
At the Bicycle Excon Russia’s largest bicycle producer Velo Motors as well as Shanghai based Phoenix Group showed a keen interest on entering the Indian bicycle market. Moscow based Velo Motors believes that the market in India is maturing for quality bikes and is on a preliminary feasibility study for an India entry. Alexander Nachevkin of Velo Motors, who is visiting India for taking part in the Asia Bicycle Alliance Conference said, “India’s huge population is what attracts us. Our entry would likely be a joint venture.” Velo Motors produced 1.7 million bicycles this year and is targeting 2 million in 2017.
Growing investments; improved business climate
Shanghai based Phoenix Group is also looking to expand to India. The Chinese component and bicycle producer cherishes an over fifteen year relationship with India’s big four, Hero Cycles, TI Cycles, Avon Cycles and Atlas Cycles. With growing investments and an improved business climate as well as an increase in sales of mid to hi-end bikes in the country, the Chinese manufacturer believes the time in near for an entry in the Indian market.
For that Phoenix would prefer a local partner. “A Joint venture with a local partner would be the right move to enter the Indian market using their knowledge of local laws and trade practices,” said Dr Zhaoyang Wang, President, Phoenix Group to Bike Europe. Phoenix produces annually some 3 million bikes.