Bicycle Industry In Bangladesh. Its History, trend and manufacturing companies. Prepared by: Zahedul islam

1. :::BICYCLE INDUSTRY IN BANGLADESH:::

2. At the very beginning in 1980 to 1990
people of Bangladesh commonly used
bicycles for the necessary work.
BRIEF HISTORY OF BICYCLE
IN BANGLADESH
In villages the postman a renowned
person at that time who always came to
house to provide their mail by cycle.

3. 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.

4. BRIEF HISTORY OF CYCLE
MANUFACTURING INDUSTRY IN
BANGLADESH

5. BRIEF HISTORY OF CYCLE MANUFACTURING INDUSTRY IN BANGLADESH
• Alita, later joined with
the Meghna Group.
• Meghna Group
commenced bicycle
exports in 1999.
Investor: Taiwan Company
Year: 1995
Plant Name: Alita
Location: Chittagong EPZ
“Meghna Group”
• Had an experience
of trading in
bicycles and
bicycle parts
during the 1960s.
• Assembled
bicycles for the
local market
during the 1980s.

6. CYCLE MANUFACTURERS
IN BANGLADESH

7. CYCLE MANUFACTURERS IN BANGLADESH
• 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.
• 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

8. 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”.

9. POPULAR BRANDS NOW-A-DAYS
IN BANGLADESH

10. LION
Cycle Life Exclusive
G S Impex
Master Wheels
Bike House
Bicycle Shop BD
Siraj Cycle & Rahman Traders
Pran RFL

11. LOCATION OF SHOPS IN DHAKA
• Mirpur
• Mohammadpur
• Gulshan
• Dhanmondi
• Tejgaon
• Bangshal
• Motijheel
• University of
Dhaka
• Savar

12. MOST SOLD BIKES & PRICE RANGE:
 Veloce Legion 10 = 13,500 tk
 Veloce Legion 20= 14000tk
 Veloce Legion 30 = 16000tk
 Phoenix 1100 = 11000 tk
 Nekro Blaze = 13000 tk
 Nekro ASH 10 = 14000 tk
 Nekro Striker = 15500 tk
 Nekro ASH 20 = 16000 tk
 Nekro ZEN 2015 = 16000 tk
 Combat Ak 10 = 11000 tk
 Combat Ak 20 = 11500 tk
 Core Spike = 10000 tk
 Core Slash = 16000 tk
 Core Raptor = 14500 tk
 Foxter Draco = 10500 tk
 Foxter Dorie WSD = 11200 tk
 Raleigh Oxford (Hybrid) = 11200
tk
 Raleigh Campus (Hybrid) = 10000
tk
 Merida = 12000 tk
 Paxton T950= 11000 tk
 Falcon 300 (MTB) = 9900 tk
 FALCON 500 (MTB) = 12,500 tk
 Mustang Alpha 101 (MTB) =
13,500 tk
 Mustang Alpha 201 (MTB) =
15,000 tk

13. 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.

14. • Bicycles are the single largest export commodity in the engineering sector
of Bangladesh. It accounts for 7.5 per cent of the total engineering
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.
STATISTICAL DATA:

15. (( 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.

16. “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.

17. 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.

18. 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.

19. ...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.

20. THANK YOU