Bicycle sales have taken a sombre turn, both domestically and internationally, leaving the local industry paddling through a tough time that manufacturers describe as 'even worse than the Covid era'.
Insiders said local bicycle manufacturers and traders are encountering setbacks as demand experiences a decline in both local and international markets due to economic slowdown.
Meantime, manufacturing costs have surged due to increased import expenses for raw materials amid a greenback crisis in Bangladesh. Local traders, responsible for importing two-wheelers, have scaled back their imports due to complications in opening Letters of Credit (LCs), aggravated by the ongoing currency crisis.
This sector, remarkably, did not face such adversities even during the pandemic when Bangladesh's export-oriented bicycle manufacturers witnessed a significant surge in demand for their products in the global market.
Prior to the decline in the last fiscal year, the country's export earnings from bicycles grew by around 28 per cent from $130.89 million in the corresponding fiscal year (FY) 2020-21 to $167.95 million in FY 2021-22.
However, it declined by 15 per cent to $142.24 million in the last FY, according to data available from the Export Promotion Bureau (EPB).
"The economic uncertainty across the globe, especially in Europe, centring on the Russia-Ukraine war, is the most crucial factor for the negative growth," said AHM Ferdous, a general manager at Alita (BD) Ltd.
Based in the Chattogram EPZ, the bicycle maker is a one hundred per cent export-oriented company.
Bicycles experienced a surge in demand in Europe during the pandemic, as people opted for bicycles considering them an environment-friendly mode of transport with health benefits, he said.
The higher import cost of raw materials is now a major challenge for local manufacturers, he added, noting that between 30 to 40 per cent of the bicycle parts are imported.
The main destinations for bicycle exports from Bangladesh include Germany, the United Kingdom, India, Denmark and the Netherlands.
Sources said that Meghna Group leads the country's bicycle exports, grabbing around half of the international market for Bangladeshi companies. They also have a strong local presence with their brand 'Veloce'.
Md Luthful Bari, a director at Meghna Group, said local sales remain lower than expected, mainly due to inflationary pressures on consumers.
"Unlike the usual time, sales remained lower during the period after the Secondary School Certificate (SSC) examination this year," said Mr Bari, who is also the secretary general of the Bangladesh Bicycle and Parts Manufacturers and Exporters Association.
Sources said the local market is still mostly dependent on imports, although local bicycle manufacturing has been gradually picking up over the past couple of years.
According to their estimation, there is an estimated demand for 2.0 million pieces of bicycles per year. Of it, 40 per cent of bicycles are made locally, while the rest are imported.
Currently, the bicycle market in the country is estimated at around Tk 18 billion, with an annual growth rate of 7-8 per cent.
Cyclists and enthusiasts said that the local market in recent times has been facing difficulties as they find it hard to access quality bicycles in the market.
"Traders have reduced imports as they encounter difficulties and witness dwindling demand," said Jobayed Ahsan, a cycling enthusiast.
Ahsan suggests that local companies should increase their investment in research and development to better understand the needs of local consumers and reduce import dependence.
He also recommends that companies focus on innovation and new models, including electric bikes.
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