Hero Cycles, Atlas and TI Cycles have increased prices of their bicycles by 4 percent, with more prices rises on the cards. Bike prices are likely to increase worldwide as the global steel shortage continues to bite. And it's not just gas-pipe steel bicycle frame-tubes that are in short supply, raw materials of all types - rubber, alloy, cardboard, everything - are being gobbled up by the fast-growing Chinese economy.
Steel price hikes make for costlier Indian bikes
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.
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