Hitting raw nerve: Rising input costs pedal bicycle prices up

Ludhiana: The ongoing crisis in West Asia has begun to cast a shadow on the bicycle industry of Ludhiana, with the manufacturers announcing a price hike of Rs 250–300 per unit amid rising input costs. The increase, triggered by escalating prices of steel, plastics, rubber, paint and chemicals, is expected to impact both businesses and household buyers in the coming weeks.Industry leaders say the supply chain disruptions have pushed up the cost of key raw materials. As a result, the bicycle manufacturers have been left with little choice, but to increase the prices.With multiple raw materials witnessing price increases simultaneously, the bicycle sector is bracing for a challenging period.Speaking about the development, Rishi Pahwa, president of the All-India Cycle Manufacturers Association (AICMA), said the continued surge in raw material prices had forced companies to revise their prices. "Since the prices of raw materials continue to increase, we have had to increase the prices of bicycles by Rs 250 to Rs 300 per unit. Steel prices continue their upward rally, while plastics, rubber and paint have also become costlier due to the West Asia crisis," he said.The bicycle industry depends heavily on steel for frames and components, while plastics and rubber are used in seats, pedals, tyres, grips and other accessories. Paints and chemicals, many of which are derived from petroleum-based products, have also seen price volatility following tensions in West Asia that have affected crude oil markets and shipping routes.The manufacturers said even a small increase in multiple inputs impacted overall production cost, especially in a price-sensitive segment like bicycles. "Margins in the bicycle industry are already tight. When steel, rubber, plastic and paint all increase simultaneously, the cumulative impact becomes difficult to absorb," another manufacturer said.Apart from the raw material inflation, higher freight charges and uncertainty in shipment schedules were further adding to cost pressures. Industry players said deliveries of certain chemicals and components sourced from overseas had slowed, leading to inventory concerns and higher procurement costs."We also had to increase the price in the range of Rs 250-300 because raw materials have become costlier," says R D Sharma from a Focal Point-based manufacturing firm. "Price of everything has increased. Not only steel, but all other materials, including brass, chrome, nickel, PVC, chemicals, paint and the packing material, have also become more expensive," he said. There is also a lot of uncertainty because of which people are only purchasing a limited amount of material and products, he added. "Earlier if anyone required 2-3 tonnes of material, they would purchase 10 tonnes, to maintain a stock. But now they purchase only the bare minimum quantity because of uncertainty about everything," he said.
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