Rising Raw Material Rates Worry Children’s Bike Industry | News Ludhiana

Ludhiana: Small units involved in assembling and selling children’s bicycles are going through a tough time as parts costs have skyrocketed due to rising raw material prices. Prices for certain parts, including the frame, bottom bracket, chain, hub and basket, have increased by 25%.
Businessmen said higher prices had squeezed their profit margins and new orders had stopped coming as buyers weren’t ready for new tariffs.
Ajay Sehgal, a manufacturer and trader of children’s bicycles, said: “Over the past month, the prices of several bicycle components, especially in the children’s segment, have skyrocketed due to the unwarranted increase in commodity prices, such as steel. and plastic. The biggest problem is that the rates are not stabilizing. The price of the pipe is Rs 95 per kilogram, which was Rs 76 last month. Similarly, the BB set is now supplied to us for Rs 34, which was previously Rs 28. Chain rate increased from Rs 48 to Rs 44, hub to Rs 80 from Rs 75 and spoke (110 mm) at Rs 118 per dozen from Rs 108.”
Prabhjot Singh, another cycle parts trader, said: “The sudden and sharp increase in tariffs is giving us sleepless nights because on the one hand our investment has increased and on the other hand our buyers are refusing to pay us any new rates. We cannot absorb the entire increase.
According to Kulpreet Malhotra Bunty, Executive Member of United Cycle and Parts’ Manufacturers’ Association, “The bicycle industry, especially micro and small units, and traders are going through a bad phase. The increase in raw material prices forced us to increase the prices of finished products, which caused a huge drop in sales. Customers are not ready to buy at new rates. What’s worse is that we now have huge stocks of unsold parts, which we purchased at new rates, thinking we could pass some increase on to our customers. But the commands are not linked. »
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