Department of Industrial Policy and Promotion (DIPP) had directed the bicycle manufacturers to install a set of 10 reflectors with ISO 6742-2 on each bicycle i.e. four on pedals, two each on front and rear wheel, one on lamp bracket and another one on rear mudguard from September 1 this year, after a Supreme Court committee on road safety of government of India, made it mandatory.
As a result, Indian bicycle industry has to import reflectors worth Rs. 100 crore per annum as the specified reflectors are being made only by a single Chinese company. Indian SMEs, which are already manufacturing bicycle reflectors employing thousands of workers, are worried about this sudden loss of business and jobs. Sudden change in standard and norms will make huge impact on the industry which might end up shutting shop.
Difference
Reflectors which are made in India also considered good but reflection is not from the specific angles which is in made by Chinese company. ISO 6742-2 is international standard applicable to retro-reflective devices used on cycles intended to be used on public roads and, especially, bicycles. It specifies photometric and physical requirements of retro-reflective devices.
Impact
If government does not decide to defer the rule of fixing new type of reflectors on bicycles by 1 year then bicycle industry will be fully dependent on import which might cost huge loss to industry as well as country.
Charanjit Singh Vishivkarma, President of United Cycle and Parts Manufacturers’ Association (UCPMA), told SMEpost, “it is going to hamper “Make In India” campaign as every year cycle industry will need to import reflectors worth Rs 100 crore. If Government gives us of 6 months or a year’s time; we can develop such reflector here in India. This decision is creating monopoly of Chinese company as there is only one company named Satellite which manufactures such reflectors.”
Big cycle manufacturers are welcoming the move, terming it good safety measure as in the night bicycle riders face many problems.
“Yes, it will increase burden on us but on safety ground, it is right decision and we are implementing it”, said Arun Alagappan, Sr. Vice President (Retail & BSA Motors), TI Cycles of India. Such reflector will increase bicycle cost by almost Rs 150 per cycle, Raha told SMEpost.
“We welcome this move as earlier there was no law for bicycle riders’ safety and this move is highly appreciated. We have already started to implement it”, said Debashish Raha, GM-RND, Atlas Cycle.
Necessary Steps
Bicycle manufactures and associations recently met Union Transport Minister Nitin Gadkari, seeking extension for implementation of government order.
Indian Bicycle Manufacturing Association also wrote a letter to Prime Minister Narendra Modi requesting his intervention.
The size of the Indian bicycle industry stands at US $1.2 billion. With annual turnover of more than 12 million bicycles, 10% of the world’s annual bicycle production, the bicycle industry is one of the most established industries in India. The annual domestic demand of bicycles in India is approximately 10 million units out of which around 2.5 million units are a government demand for the various welfare schemes. Most cycles manufactured & sold in India are in the low price bracket of Rs. 2,500 to 3000. Adding Rs 100 to 150, will be another burden on consumer. So, it will be better if government give subsidy on this and try to develop such reflectors in India.