Bicycle Industry in Pakistan

We can say that the decline of local Pakistani industry is just because of imported Chines Bicycles are covering the market share.
Ahsan Ilyas 9349 M Shoaib Iqbal 9806 Sheroz Fardos 9810

Overview:
1952 the Shortage of foreign exchange reserves Nila Gunbad The international bicycle industry is much stronger than Pakistani bicycle industry. India is the second largest manufacturer of bicycles after china We can say that the decline of local Pakistani industry is just because of imported Chines Bicycles are covering the market share.

Specification of Bicycles
Fancy Bicycles (Majority Chinese Imported) Standard Bicycles (Pakistani Manufactured) Smuggled Bicycles

Fancy Bicycles
Mountain bike, BMX, Electric bicycles and recumbent bicycles. less weight bicycles with different frame designs, colors, braking system, comfortable seats, stylish reflectors, electric light system for mountains, classy mudguards, sporty looks, shining nickel

Chinese Phoenix Bicycle

Chinese Phoenix bicycle was everywhere in the shops. low prices and stylish designs The finishing of the Chinese bicycle is excellent as compare to the local manufactured bicycles

Standard Size Bicycles

personal use The target market of standard bicycle is poor people or those who work on wages 50,000,000 people work on daily wages The main features of standard bicycle is heavy weight, we can carry children giving a ride to our spouse or carry lunch boxes, laundry cloths, milk containers night watchman

Local Players
SOHRAB: SARTAJ:
Rustam & Sohrab Factory, Sheikhupura Road,

Shahdara, Lahore-Pakistan.
Locally Manufactured in Nila Gunbad Workshops, Lahore, Pakistan Lahore, Pakistan

PEGO: Locally Manufactured, In Nila Gunbad Workshops,

EAGLE: Shahdara, Lahore HUMBER:Locally Manufactured, In Nila Gunbad
Workshops Lahore, Pakistan

Smuggled Bicycles
A CHINESE IMPORTED CYCLED COST US PKR 10,000 ,WE CAN GET BETTER QUALITY SMUGGLED BICYCLE AT MERE PKR 2,000 ONLY

Production Capacity
Year 2002 to 2003 No. of bicycle produced 6,29,695

2003 to 2004
2005 to 2006

6,81,448
4,49,400

2007 to 2008
2008

6,50,000
10,00,000

2010

14,50,000

Market Share of local Production

Sohrab which comprised more than (80 %) eighty percent share of the whole industry whereas the rest of (20 %)

Market Share of Chinese and Smuggled Bicycle

Chinese imported cycles account for around 90% of the fancy bicycles and 10% accounts for smuggled

Sources of Raw Material

Steel- Pakistan Steel mills. Front head of bicycle is imported from Italy, Japan and China. Plastic material- Universal Rubber Manufacturer in Lahore Nickel- imported from United Kingdom Paint- ICI companies and Burger paints Acids- imported from United Kingdom and locally made in Lahore as well

Pricing
Average Price of Standard Bicycle: Rs. 4700 Average Price of Fancy Bicycle: Rs. 8000 Average Price of Smuggled Bicycle: Rs: 10,000

Findings
Key Product: Mountain bike accounts for key product of retailers which sells the most and has many varieties. Most of the sales majorly 2/3 of the sales are mountain bikes now days. New Trends: Folding Bicycle is the new trend in the market. Customer demand is increasing day by day.

Findings
Major Buyer: Most of the bicycle in Pakistan is purchased by Children age group 5 15. Brand Awareness: Customer is not aware of the brand name they only know Sohrab and Chinese rest sales are due to price factors or design. Discounts: Discount is given only on large cash purchase. It can account to 5% to 10% of selling price. Credit Sales: No credit sales for customers retailers its only between retailers and importers.

Findings
Import/Exports: We import around 20,000 bicycles monthly and export is only done by Sohrab to Srilanka, Bangladesh and few countries in Africa. Assembling: Importing parts and assembling it locally is more expensive than importing assembled bicycle from China. Overall Market: Market for bicycles in Pakistan is stagnant it is not increasing nor decreasing but the retailers hope it will increase as this government will go.

Conclusion:
Bicycle Industry in Pakistan is fighting a war among itself to sustain. Nowadays it is facing threats from bicycles imported from China and Smuggled from USA.Standard Bicycles still is dominated by local players like Sohrab and Eagle. Bicycles with design like (Gear, Suspension, Mountain, Races) are dominated by Chinese companies. Due to changing trend and availability of Motorcycles demand for bicycles are not increasing it is showing only stagnant growth.