India's Business Standard newspaper reports that Hero Cycles, Atlas and TI Cycles are planning another round of price hikes later this month to cope with higher production costs.
Hero Cycles of Ludhiana produces 5.6 million bicycles a year and is market leader in India, controlling over 50 percent of the domestic market for bicycles.
Sanjay Kapur, co-president of Atlas Cycles, based in Haryana, said continued price hikes look likely:
The consumer has to bear the brunt of higher steel prices."
Indian bicycle manufacturers produce 12.4 million bicycles a year, of which a million units are exported.