Export of bicycles from Bangladesh has shown a downtrend year-on-year in the outgoing fiscal year apparently for the falling demand in Europe and failure on the part of exporters to supply the ordered ones in time.
Bicycle exporters have, however, expressed the hope that bicycle exports might increase from the month of January next year.
According to the data available with Export Promotion Bureau (EPB), bicycle exports in the FY23 declined by 15.47 per cent compared to the corresponding period of FY22.
Two-wheelers worth $168 million were exported in the FY22 and it came down to $142 during the same period of the previous fiscal year. This was the highest decline in bicycle exports since FY16.
The decline in exports has downgraded Bangladesh from the third largest bicycle supplier to the European market to the fourth position, according to Eurostat, the statistical office of the European Union that publishes Europe-wide statistics and indicators.
In the FY15, the country exported bicycles worth over $117 million and during the same period of FY16, bicycle exports declined by 23.38 per cent to $89 million.
There is no accurate data on the bicycle market in the country, but unofficial sources said that Bangladesh produces 1.5 million bicycles every year, including the assembled ones, and most of those are exported. Europe is the largest market for Bangladesh. Among European countries, Germany is the largest market for Bangladesh.
At present, six companies are producing or preparing to produce bicycles in the country.
Industry insiders said that during the Covid-19 pandemic, the demand for bicycles in Europe increased significantly as a comparatively safer vehicle. But the demand decreased after the pandemic.
According to IRI, a data analytics and market research company, nearly three-quarters of European consumers are now cutting spending on everyday items, including food, to make ends meet amid the worsening inflation.
Md Luthful Bari, chief operating officer of Meghna Group, the country's biggest bicycle exporter, said, “Bangladesh mainly exports bicycles to Germany where its demand has dropped significantly due to the ongoing global economic headwinds.”
“Besides, due to frequent disruption in electricity and gas supply to the factories for the last few months, we are not even be able to ensure supply of bicycles for which the importers already placed orders,” he added.
Apart from the increase in dollar prices, these reasons are contributing much to the declining exports of bicycles, said Bari, also secretary of Bangladesh Bicycle and Parts Manufacturers' and Exporters' Association.
Kamruzzaman Kamal, director for marketing of Pran-RFL Group, said, “The impact of Russia-Ukraine war on exports of bicycles was not immediate. Export orders started declining since July last.”
Kamal believes that they will start getting increased orders of bicycles after the first quarter of FY24.
Meghna Group’s Lutful Bari also echoes the same, saying that export situation might start improving from January 2024.
