New Delhi-based banker Vamini Sethi, 29, isn’t quite sure why she grew passionate about cycling. “I liked it from the time I was a child,” she says. “I had a bicycle which cost around Rs 4,000. Once, I saw a fancy Firefox and wanted to buy one, but my parents wouldn’t let me.” Today, she owns three high-end bicycles, including a Rs 2.5 lakh XTC Advance 4 from Taiwanese manufacturer Giant. She participates in cyclothons—cycling marathons—and is preparing for a Manali-to-Leh trip. “I’m not selling any of the three,” she says. “If one is out of service, I have a backup.”
Sethi is part of a small but growing tribe of cyclists who have the money, and the inclination to spend it on their passion. India is the world’s tenth-largest manufacturer of bicycles, making 12 million to 15 million a year. Four players rule the Rs 4,600 crore market—Hero Cycles, TI Cycles, Atlas Cycles, and Avon Cycles. But most of the bicycles they make are standard issue, which cost between Rs 3,500 and Rs 4,500 each. The ones used by those like Sethi, who pedal for pleasure and fitness, can cost up to a hundred times as much, making that niche worth about Rs 100 crore.
“We unveiled a Rs 11 lakh bicycle at the last Auto Expo,” says Pravin Patil, managing director and CEO of Starkenn Sports, which distributes Giant bicycles in India. “The first one sold within a month. That encouraged us to import such high-end bicycles.” There is no agreement on the lower end of the niche. Some industry insiders set it at Rs 25,000, others at Rs 1 lakh.
Though most domestic bicycle manufacturers make high-end bikes—Firefox Bikes, TI Cycles’ Montra, and Starkenn are the top names—many are imported. Leading global brands such as Giant, Trek, Specialized, Scott Sports, Cannondale, and Bianchi are available in India through distributors. And while the overall bicycle market is near-stagnant, the high-end segment is expanding. “We have 60% growth over last year in the road bike segment,” says Jaymin Shah, country manager, Scott Sports India. “Year-on-year growth since 2012 has been 40%. We are on target to achieve 45% growth this year.”
Not everyone is gung ho, especially after import duty on bicycles was raised from 10% to 30% and on bicycle parts from 10% to 20% in the 2012-13 Budget. “Overall, the duty is around 39%,” says Shiv Inder Singh, managing director of Firefox. “Not many customers want to pay that much extra.”
Firefox, set up in 2006, is the pioneer in high-end bicycle-making in India, though its factory is in Bangladesh. “There was dealer resistance in the beginning due to the cost,” says Singh. “But we showed them they would get much better margins. Now they know if they conform to our standards, we will protect them.” With awareness about fitness, rise in disposable incomes, and India embarking on five consecutive years of 8%-plus GDP growth from 2003, the timing was just right.
What distinguishes a high-end bicycle from a standard one? “Most important is the quality of the frame,” says Vikash Gupta, sales and marketing manager at The Bike Shop, Delhi, which distributes luxury bicycles. “The lighter the frame, the better—and more expensive—the bicycle. Carbon fibre frames are the lightest and best. Then there’s the quality of the suspension, hubs, tyres, and the gears.” The difference is felt especially when cycling at great speed. “In top-class bicycles, the frames are tested in wind tunnels and the tyres are designed to cut wind resistance. These add up to that one-second advantage,” says Singh.
The segment is divided into roadsters, mountain bikes, and hybrids (which combine some features of the first two). While quality requirements vary, god is in the detail. “Small components like the bottom bracket and the ball bearings make all the difference,” says Patil. “It’s difficult to explain all this to customers, so we encourage them to experience the bikes instead.” Starkenn has set up two experience centres in Pune and Bangalore.
Customers are from all ages but the most common, according to Patil, are those in the 35 to 50 group. “This category is the fastest growing and the most health-conscious.” Some go for EMIs. Singh says those aged 9 to 15 are also an enthusiastic bunch—though constrained by having to ask their parents for the money to buy.
There are challenges, apart from the high import duty—among them, the absence of a cycling culture and the lack of cycling lanes in most cities and towns. Ashwin Prabhu, manager, urban transport, EMBARQ India, a nonprofit providing urban mobility solutions, believes until there’s an “enabling environment”, the market will remain small. “You need safe and convenient infrastructure. You need parking space for cycles in malls and office buildings, which are often not there.” He adds that across the world many city governments—as in Amsterdam and Copenhagen—have realised that encouraging cycling solves traffic issues.
