Bicycle exports hit a new high

Bicycle exports have hit a new high, buoyed by increasing demand for the green mode for transportation aiding social distancing in the face of a surging number of coronavirus infections.

Manufacturers registered 58 per cent export growth year-on-year to $130 million in fiscal 2020-21, Export Promotion Bureau (EPB) data shows.

The previous high was $126 million in fiscal 2014-15.

"People in European countries are preferring bicycles in their efforts to maintain social distance owing to the coronavirus," said Md Luthful Bari, director of operations of Meghna Group, the country's biggest bicycle exporter.

"The health consciousness has fuelled demand and use of bicycles," he said.

Bicycle exports had been on the downturn since fiscal 2014-15. The two wheeler is exported to European markets and demand began recovering following the Covid-19 outbreak, said exporters.

Kamruzzaman Kamal, director for marketing of Pran-RFL Group, said the business houses export bicycles in bulk quantities to the European Union countries, including Germany.

The Covid-19 pandemic has triggered demand for bicycles worldwide and especially in northern Europe, he said, adding that they exported 3 lakh bicycles last fiscal year, posting a 60 per cent growth year-on-year.

"The demand will also increase in upcoming days as European people like to use two wheelers due to rising health consciousness and for excursions," said Kamal.

RFL Bike Industry has a capacity to manufacture 10 lakh bicycles per year.

Bari, also secretary to the Bangladesh Bicycle and Parts Manufacturers' and Exporters' Association, said the global bicycle market size was valued at $54.44 billion in 2020.

It is expected to expand at a compound annual growth rate of 7 per cent from 2021 to 2028, he added.

"The increase in the number of people opting for bicycling as a form of leisure is anticipated to propel the growth. Preference for bicycles as a convenient form of exercise to ensure a healthy life, free from obesity and other disorders, is expected to further drive the market expansion," he said.

"It is now being treated as an environment friendly, green mode of transportation as well," he said.

The export opportunity and development of domestic manufacturing facility also helped generate at least 7,000 jobs directly, said Bari. 

He said manufacturers need policy support to expand export.

"We requested cash incentive for bicycle export in addition to bond facility," he said, demanding a reduction of corporate tax for bicycle exporters to 12 per cent in line with that for the garment sector.