:::BICYCLE INDUSTRY IN BANGLADESH:::

BRIEF HISTORY OF BICYCLE

IN BANGLADESH

At the very beginning in 1980 to 1990

people of Bangladesh commonly used
bicycles for the necessary work.

In villages the postman a renowned

person at that time who always came to
house to provide their mail by cycle.
Was a popular form of vehicle only for the
elder people who did use cycles only for
necessary work not any entertainment
activity.

Only one brand called “Hero cycle”

manufactured in India, Punjab was so
popular.
 BRIEF HISTORY OF CYCLE
MANUFACTURING INDUSTRY IN
BANGLADESH
BRIEF HISTORY OF CYCLE MANUFACTURING INDUSTRY IN BANGLADESH

Investor: Taiwan Company • Alita,

the later joined
Meghna with
Group.
•Meghna
commenced Group
bicycle “Meghna Group”
Year: 1995 exports in 1999.
Plant Name: Alita • Had an experience
of trading in
Location: Chittagong EPZ bicycles and
bicycle parts
during the 1960s.
• Assembled
bicycles for the
local market
during the 1980s.
CYCLE MANUFACTURERS
IN BANGLADESH
CYCLE MANUFACTURERS IN BANGLADESH
• Export Markets : UK,
Germany, Holland, Italy,
Greece, Ireland, Belgium,
Denmark, Austria, Portugal,
Canada. Domestic Market.
• It is operating its local bicycle
business through its 2 different
wings – CycleLife Exclusive
and CycleLife Ltd.
• Four sales outlets: Dhaka-02,
Sylhet-02, Chittagon-01.
GERMAN BANGLA
• This private company was
founded in 2006.
• A joint venture company with
German Panther International
GmbH and BD.
• Mid-sized organization in the
motorcycle and bicycles
wholesale and manufacturers
industry located in Dhaka.
• German company opted out
from the partnership in 2008.
• It is a Sister concern of PRAN-
RFL Group.
• Export Started: The export
business has started in 2015.
• Exported Markets: UK,
Belgium, Austria,Germany
• Partners: Sports Direct, Toys R
Us, Argos, S’COOL Bike and
Tandem Group Cycle.
 Bicycle exports from Bangladesh are concentrated mostly in three European markets.
(United Kingdom, Germany & Belgium)

The EU in 1993 imposed anti-dumping duties of 30.8 per cent on bicycles manufactured
and exported by China as a penalty till 2016. It created a huge opportunity for Bangladesh
to enter the market with lower price cycle.

EU recently assigned 48.5% anti-dumping duty now in place for China made bikes
exported to the EU member states will not end by 2018.

Bangladesh follows Taiwan, Thailand, Sri Lanka and Indonesia in cycle exports to Europe.

“The main concerning issue is after 2018 when the penalty will end up”.
POPULAR BRANDS NOW-A-DAYS
IN BANGLADESH
LION

Cycle Life Exclusive

G S Impex

Master Wheels
Bike House

Bicycle Shop BD

Pran RFL

Siraj Cycle & Rahman Traders

 LOCATION OF SHOPS IN DHAKA

• Mirpur
• Mohammadpur
• Gulshan
• Dhanmondi
• Tejgaon
• Bangshal
• Motijheel
• University of
Dhaka
• Savar
MOST SOLD BIKES & PRICE RANGE:

 Veloce Legion 10 = 13,500 tk  Foxter Draco = 10500 tk

 Veloce Legion 20= 14000tk  Foxter Dorie WSD = 11200 tk
 Veloce Legion 30 = 16000tk  Raleigh Oxford (Hybrid) = 11200 tk
 Phoenix 1100 = 11000 tk
 Raleigh Campus (Hybrid) = 10000 tk
 Nekro Blaze = 13000 tk
 Merida = 12000 tk
 Nekro ASH 10 = 14000 tk
 Paxton T950= 11000 tk
 Nekro Striker = 15500 tk
 Falcon 300 (MTB) = 9900 tk
 Nekro ASH 20 = 16000 tk
 FALCON 500 (MTB) = 12,500 tk
 Nekro ZEN 2015 = 16000 tk
 Mustang Alpha 101 (MTB) =
 Combat Ak 10 = 11000 tk
13,500 tk
 Combat Ak 20 = 11500 tk
 Mustang Alpha 201 (MTB) = 15,000 tk
 Core Spike = 10000 tk
 Core Slash = 16000 tk
 Core Raptor = 14500 tk
TRENDS OF CYCLE
:::: During 1980 to 1995 :::
 Mainly cycles used for personal necessary work.
 For office work.
 Postman was mainly used cycles for delivering mails.
 In marriage ceremony cycles was preferred as a valuable gift.
 Only med- earning people can afford to buy cycles.
 There was only one brand available at that time “Hero cycle”.
:::: From 2000 to 2017 :::
 Availability of different designs cycles.
 Awareness about environment friendly vehicle.
 Travelling trend with bicycles.
 People of all age’s people are getting interested in
bicycle journey.
 Users ranging from job holder to the school students.
 Using it as Exercise material.
 • Bicycles are the single largest export commodity in the engineering sector
STATISTICAL of Bangladesh. It accounts for 7.5 per cent of the total engineering
DATA: exports.

• Bicycle exports from Bangladesh are concentrated mostly in three

European markets, which accounted for 87 per cent of the market share
in 2011-12. The top three destinations in 2011-12 were the United
Kingdom (US$ 67 million or 64 per cent), Germany (US$ 15 million or 14
per cent), and Belgium (US$ 9.2 million or 8.7 per cent).

• Bangladesh exported bicycles worth US$ 112.89 million during 2013-14

(Export Promotion Bureau, 2014), thereby earning for itself the tenth
position in the global ranking of bicycle exporters. The export figure went
up from around US$ 106 million in 2011-12 and 2012-13 fiscal years and
US$ 111 million in 2009-10.

• The bureau said around 80 percent of bicycle exports was to the European
Union countries, and the rest to India, the UAE, Australia and other
nations.
 (( 2016 ))
 Export Earnings From Bicycle Marked a Significant Fall in the last fiscal year (FY).

• Targeted to export $132 million but only exported $ 99.15 million(75.11 per cent of the target)

• As a sub-sector of country’s engineering sector, fell short of target by 24.89 per cent in the just
concluded FY 2015-2016 in export.

• However, the last FY’s earnings from shipment of bicycle also declined by 21.35 per cent over the
previous FY earning $ 126.06 million, according to the “Bangladesh Export Promotion Buru data.

:::REASONS:::
• Tightened Generalized System of Preferences (GSP) by the USA and European Union.

• Higher freight cost than China causing price increment of Bangladeshi bicycle products .

• Also low cost full fledge production mechanism of Chinese producers along with Indian competition
have reduced Bangladeshi bicycle export significantly in the last FY.
 “Eurostat” Published:12/06/2017
 Recently Eurostat, official EU website for European statistics published statistics about EU's
exports and imports.
 42% of the bicycles imported by EU Member States came from outside the EU, mainly from Taiwan
(24% of bicycles imported from non-EU countries), Cambodia (18%), Bangladesh (11%) and the
Philippines (10%).

Manufacturers in Bangladesh supplied 11% of the European Union’s (EU)

total imported bicycles in 2016, making the country the “third largest”
bicycle exporter to the bloc after Taiwan and Cambodia.
Bike Police.
Availability bicycles in different tourist destination.
Government should reduce vat & tax.
Government & Private bank should provide loans for cycles.

Cycle Parking place should be available in every market,

school, university.

Television and print media should make news on different

cycle program and activities.

Women’s need to be encouraged.

After 2018 when the anti-dumping penalty on china end in European
market a huge competition will arise.

Government support & instability.

Insufficient promotion and marketing plan to increase the popularity of

Bicycle.

Roads are not suitable for travel. During the rainy season roads are filled
with water.

Season & Weather: As temperature increasing in our country it is difficult

for the people to ride one place to another place smoothly. Over sweating
may discourage people to take ride with cycle.

Working peoples are more getting interest in having a motorcycle rather

than bicycle.
 ...THOUGHTS…
• Companies should come up with huge promotional activity for all age groups.

• Identification of new markets require to diverse export.

• Cycle shops should be available in different districts.

• Social activity with cycles require to increase.

For example: In India a group of people provide an opportunity for the blind people to have a cycle
ride.

• Services like “PATHAO” need to be developed to be available for everyone.

• Programs in TV, Radio and publication is require to keep in touch with the people.

• Office workers need to be encouraged to take a cycle ride: Companies should provide cycle loans for
the employees.
THANK YOU