Mandatory reflectors on bicycles: Inc pulls brakes on production

Ludhiana: A large number of small scale bicycle manufacturers and traders have halted production and sales after the mandatory provision of affixing reflectors on new bicycles came into effect from January 1, 2023.
According to businessmen, the cost of bicycle is going to increase by about Rs 50 once they affix reflectors and as their dealers and buyers are refusing to bear any rate hike, they have decided to suspend the sales for the time being.
Charanjit Vishvkarma, ex-president of United Cycle and Parts Manufacturers Association (UCPMA) said, “From past three days now, majority of the small manufacturers and traders dealing in bicycles have put brakes on their sales. The decision has been taken because of the new law making it mandatory to fix 10 reflectors on every bicycle, coming into effect from January 1. Due to this, the cost of manufacturing of a bicycle will increase by Rs 50, and unable to bear the increased cost, factory owners and local traders tried to increase rates of the bicycles for their dealers and buyers in other states, but they too have refused to bear it. Due to this complex situation, the small bicycle manufacturers and traders of Ludhiana have temporarily halted the production and sales of the bicycles.”
Businessmen say the industry also had to suffer the jolts of recession.
According to Kulpreet Singh Malhotra, prominent bicycle trader, “Amidst the ongoing recession in the bicycle industry, the new rule of fixing the reflectors has made the matters further worse for us. Already our sales are very slow due to the recession, and now with increase of Rs 50 per bicycle, the crisis has deepened for us. The only way out of it is if the government defers the decision to fix reflectors for a few months until the recession is over.”
Businessmen also claim that since there are only 3-4 local manufacturers of the reflectors approved by the government, the rates are high due to increasing demand.
Inderjit Singh Navyug, ex-president of UCPMA said, “Besides increase in the rate of bicycles, another cause of concern for bicycle manufacturers and traders is that there are only 3-4 local manufacturers of reflectors which are approved by the government.
“There is urgent need to setup more reflector making units so that the rate of the reflectors come down for the bicycle manufacturers, and there is ample supply in the market.”