Ashutosh is a techie who prefers to explore on a bicycle instead of a traditional transport like a car or bike. The cycle that cost him INR 35,000 helps sate his hunger for adventure. Ashutosh is only one of the many in this bandwagon seeking a high end bicycle.
Imported bikes sold by foreign companies like SCOTT, Merida and Trek cost anywhere between INR 25000 to INR 10 lakh. While there is no booming market for these high-end bikes, the company estimates 40% growth in Indian market.
Uday Salunkhe, Group Director of Welingkar Institute of Management, observes the rising disposable income in middle classes. “This has resulted in the need of high end bikes that can withstand Indian roads. Hence, companies like SCOTT are looking to build products specifically for Indian market.” Salunkhe adds.
SCOTT currently imports products from Cambodia. However, under their Make For India program, the company may be looking at setting up in India. “The company will be looking to tie-up with a partner for effective and beneficial setup to cater to the Indian market,” says Uday Salunkhe.
A better example would be Hero Bicycle owned Firefox that has tie-ups with various international brands. A similar move in India will create job opportunities in the sector, concludes Uday Salunkhe.