China Bike Share Craze: Fushida Grows to 20 Million Production
TIANJIN, China – Whether it is a craze or not, the bike sharing boom in China brings demand for new bicycles to unprecedented levels. Bike sharing scheme operator Ofo and the world’s largest bicycle manufacturer Fushida entered into a strategic cooperation. The contract includes an annual production of 10 million bicycles for Ofo.
The China Bicycle Association reports that Ofo is now taking up one eight of the country’s total bicycle production. As part of the agreement Fushida will double its capacity from 10 to 20 million units annually.
Ultra-million production capacity increase
According to Fushida chairman Xin Jiansheng “Including the Ofo agreement we expect our annual sales to exceed the 20 million mark, accounting for more than 20% of the global market. The Ofo bikes will be made on the assembly lines previously used for European and American brands. These production lines are highly automated and workers operating skills are above the average standard in the industry.”
Both parties also agreed to create an R&D centre and cooperate in supply chain improvements as well as in the global expansion of bike sharing schemes.
Investment in aluminium production
The rampant growth of bike sharing operators in China like Ofo and its main competitor Mobike are resulting in major disruptions in the bicycle industry’s supply chain as Bike Europe reported. Therefore Fushida announced an investment in a plant capable of processing 50,000 tons of alloy in order to achieve the production hike.
At the last March Taipei Cycle Show it was one of the most discussed topics; the current huge demand for basic bicycles destined for usage at the many bike sharing schemes in China. The hike in production figures as announced now by Fushida is said to be leading to parts shortages.
Ofo claims to be the world’s largest operator of bike sharing platforms and is, as of now, in 81 cities in China, the United States, Great Britain and Singapore.