Hero bets big on new bike component manufacturing unit

In a bid to reduce the dependence of local bicycle manufacturers on imported components, particularly from Chinese markets, high-end bicycle component maker Spur Technologies launched its first manufacturing unit in the state of Dhanansu e-bike valley. The company is a subsidiary of Hero Motors Company and manufacturing the new unit is expected to reduce imports from China for certain components used in high-end bikes. Production from the new unit will also boost exports and also meet local demand, company officials said.

According to the company, a new manufacturing unit was built with an investment cost of 60 crore and will deploy front suspension forks, double-walled alloy rims, BB cartridges, alloy stems and freewheels (single speed) in the state-of-the-art e-bike valley.

Ludhiana, home to 90% of India’s bicycle manufacturing, relies heavily on China for some parts used in e-bike manufacturing.

Pankaj Munjal, President and CEO of Hero Cycles, said the bicycle component industry needs to step up its game on the global stage by shifting from steel-centric manufacturing to aluminum-centric manufacturing for light pieces, a trend that prevails in Europe. European Union, North America and Japan for more than two decades now. Innovation with materials like carbon and other composites as well as the creation of patents and other intellectual property must be done locally to maximize added value, he said.

Manufacturing high-end aluminum components for domestic and global markets will be a key focus of the new plant, said Abhishek Munjal, Director of Hero Cycles. As India prepares to overtake China and Southeast Asia to become the leader in bicycle and e-bike exports, the key would be the localization of all key electrical and mechanical components in India to eliminate the dependence on China, Taiwan and Europe.

Hero Cycles, which first established the “Cycle Valley” high-tech factory called Hero eCycles Pvt. ltd. as an export and e-bike center, has established a localization program with global joint ventures and its own research and development to start local component production.

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