As a result, India risks losing a visible pipeline of Rs 10,000 crore of e-bike export orders to the European Union over the next 5 years as the bloc reduces its dependence on China and strengthens the relocation of electric bicycle production, HMC Group Chairman and General Manager Pankaj M Munjal said.
HMC Group is the promoter of Hero Cycles.
India must negotiate and conclude an agreement to reduce import tariffs on bicycles at least developed and Generalized System of Preferences (GSP) country level to zero from the existing 14 percent, a t -He underlines.
“We are concerned that the specific exclusion may have caused the manufacturing value of around Rs 1,000 crore to migrate en masse up to Rs 3,000 crore in FY24 to relocated capacity in the Union European (EU).
“Over the next five years, India would lose a visible pipeline of Rs 10,000 crore of e-bike export orders if relocated capacity from the EU succeeds in securing migrant businesses out of China instead of l ‘India, “Pankaj M. Munjal, chairman and managing director of HMC Group, said in a statement.
Pointing out that the EU is levying a heavy anti-dumping duty on imports of electric bicycles from China, up to 83%, Munjal said that China has initiated a relocation of production of electric bicycles in 2019. The estimated production of bicycles relocated electrics was 9.30,000 units, with countries such as Portugal, Poland, France, Bulgaria, Italy and Romania seizing more than 80%.
With quality products at a competitive price, Indian manufacturers are ready to seize this opportunity to secure migration activity out of China and the encouraging response from our first batch of e-bikes delivered in June is proof of this, he said. note.
“However, we are losing out on policies that would have helped the industry take advantage of the declining share of China and the Far East as e-bike suppliers to the EU – e-bikes shine with their success. absence in the FAME II and PLI regimes.
“This despite several representations to the ministries concerned, even if all electric vehicles, including electric scooters, electric motorcycles, electric cars and electric buses, benefit from incentives under these programs,” he said. -he declares.
Hero Cycles is the world leader in the production of bicycles and started manufacturing electric bicycles three years ago.
As a result of the Make-in-India initiative, the company invested over Rs 300 crore in a new factory to manufacture electric bikes, another Rs 400 crore through its supplier base and 300 crore of rupees to the UK for export to international markets to capture the lion’s share of e-bike manufacturing migration from China to EU countries, he said.
“The market for e-bikes in the EU is valued at 5 billion euros, or 50 times that of India. Sales of e-bikes in Europe are expected to increase fivefold over the next decade at a CAGR of 16%. second largest bicycle manufacturing capacity in the world and lower import duties would help increase exports to the UK, ”according to Munjal.
In addition, the benefits of the Generalized System of Preferences (GSP) are granted to many Indian products in the UK, but not to bicycles which are subject to a 14 percent import duty, he noted.
“Therefore, to compete with Least Developed Countries (LDCs) and GSP countries with zero import tariffs in UK and to remain globally competitive, India needs to negotiate and strike a deal for bring import duties on bicycles to the level of LDCs and GSP countries to zero against the existing 14 percent, ”he stressed.
The company also said it was actively conducting business development activities in Europe to secure export orders for India.