Two wheeler market, including the bicycle companies are arriving to a situation that, they have to increase the cost of their products in order to keep their profit figures as such. For the company's survival almost all the bicycle companies are increasing their cost.
Like their motor vehicle counterparts, the cycle makers are also being forced to increase prices due to the rising input costs but only slight price hikes compared to motor vehicles. It was reported that the bicycle maker Avon Cycles said the price of bicycles would go up by about 2 per cent due to the increase in input costs.
"The poor man's vehicle -- the bicycle -- will now cost Rs 55 to 65 more." Said Mr. Onkar Singh Pahwa Avon Cycles Managing Director. A standard bicycle is priced at Rs 2,700 per unit. He justified the hike saying that the industry was forced to increase the prices as the cost of the basic main raw material like nickel and steel went up sharply in the past one month or so.
He justifies their decision to increase their prices listing the facts like the hike in the price of steel. He said that the steel prices had jumped up by Rs 2,100 per tonne during the last 45 days. These new rates came into force from February 20, they added according to reports.
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