Bike Europe is reporting that China’s increased interest in India as a partner in manufacturing should come with preferential trade rates.
A controversial development in Ludhiana has set sights on becoming the bicycle industry’s largest manufacturing stronghold for high-end and electric bicycles and has already registered the interests of Chinese businesses.
It is this continued emergence of India as a force in bicycle manufacturing that has prompted China’s Bicycle Association to urge the Indian Government to consider preferential trade rates in the future.
“For attracting investments from Chinese companies we urge the Indian government to provide a preferential trade & taxation regime,” said CBA Chairman Ma Zhongchao in speaking with Bike-Eu.
It is also reported that Fushida – a manufacturer producing in excess of 10 million bikes a year – has taken a shine to the Indian market.
With anti-dumping duties putting strain on China’s export trade, in particular with EU nations, the region is looking to domestic and Asian markets with a view to increasing trade. Thus far in 2016, some 437,000 bikes have departed China for India.
For Giant, Asian trade has proved a sore spot in recent years, though the firm is redoubling its efforts to grow local market business.
Meanwhile, Hero Cycles – India’s largest bike maker – has ambitions to take over 5% of the bicycle industry’s entire global market share, outlining plans for a further string of acquisitions.