The electric bicycle industry has not been included in the FAME II, or any of the PLI Scheme. The industry has potential both in, and outside India
The electric bicycle industry isn’t much happy being left out of the major government schemes focusing on electric mobility. The industry, is neither a part of the FAME II, nor it is included in the PLI scheme.
A report in the Times of India has quoted Pankaj M Munjal, chairman and managing director, HMC Group, saying that the same might result in India losing over Rs 10,000 crore worth of export orders of e-bicycles.
The European Union (EU) is known to have taken strict actions against the China-based manufacturers of e-bicycyles. The anti-dumping tariff, levied on such manufactures and brands, is expected to reach as high as 83 per cent in Europe. The same, as per Munjal, might open doors for India-based manufacturers to win big orders from countries falling in the EU region.
India, and the players in the e-bicycle segment, might lose because of the absence of policies that include the ecosystem. The EU might also be able to attract players moving out of China. India, with policies concentrating on the segment, might be able to do so.
Hero Motors Company, last year, had noted about investing Rs 400-500 crore in its European bicycle and electric bike businesses. The aim was to grow revenues from abroad five-fold over the next few years, its chairman Pankaj M Munjal had said.
Group flagship Hero Cycles had acquired British bicycle and e-bike maker Insync in 2015 and bought a strategic stake in German premium e-bike manufacturer HNF Group together with German investment trust NSE 3.24 per cent holding IBG Beteiligungsgesellschaft Sachsen-Anhalt mbH this year.
