The bicycle market in India is projected to grow at a CAGR of over 11%, during 2016-2021,on account of growing population base, Increasing discretionary spending ,rising health consciousness among people. In India, cycling is being swiftly adopted as a means to stay fit and as a popular recreational activity. Further, many of state governments have started construction of dedicated bicycle lanes in major cities to encourage cycling, as an environment friendly means of transportation. This is also projected to drive sales of bicycles across the country in the coming years.
As premium bicycle market serves tremendous opportunities for manufacturers, the domestic players will make footprints in this segment as well as the international players would enter the market along with the innovative premium models. This would build the competitive platform for manufacturers than ever. This will surely generate the equilibrium supply demand curve for Indian premium bicycle market.
Due to the high import duty on bicycles the demand for imported brands has been negatively impacted. Thus, foreign companies are now building their manufacturing plants in India instead of importing the brands in the country. Though many brands have come in, access to elite cycling equipment is difficult in India. One has to import them paying not just the price but a high import duty (49.5% of the MRP) as well.