LUDHIANA, India (BRAIN) Monday April 16 2012 7:57 AM MT—A proposed 20 percent increase in duties on bikes imported into India from China stands to raise retail prices in that emerging market, according to local media reports.
In his 2012-2013 budget, India’s finance minister calls for a hike on duties on bicycles from 10 to 30 percent and imported parts from 10 to 20 percent, as reported by the Press Trust of India.
The import duty increase is designed to protect local manufacturers from cheaper China-made bikes, although the hike in duties for imported parts could hurt those same manufacturers.
Prices of imported bikes range from 5,000 to 20,000 rupees ($100 to $390). Domestic bicycle makers in Ludhiana reported that an increase in customs duty might decrease the overall imported value of bicycles and components, but the quantity will likely stay the same.
The rise in import duties could affect brands like Merida, Cannondale, GT and Schwinn that have entered the Indian market in recent years.