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This is an archive article published on July 26, 2023

Reflectors on bicycles: Gap in demand and supply irks small-scale units, takes a toll on biz

The mandatory provision of affixing reflectors on new bicycles came into effect on July 1, 2023.

bicycleAfter repeated extensions for the new rule, now a bicycle can't be sold without installation of 10 reflectors on it. (File photo/Representational)
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Reflectors on bicycles: Gap in demand and supply irks small-scale units, takes a toll on biz
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While the bicycle industry is complying with the central government order of affixing reflectors on new bicycles, the gap between high demand (of reflectors) and low supply is taking a toll on the business of small-scale industries.

The mandatory provision of affixing reflectors on new bicycles came into effect on July 1, 2023. After repeated extensions, now a bicycle can’t be sold without installation of 10 reflectors on it.

Ludhiana is the bicycle hub of the country with over 90% bicycle manufacturing done here itself. However, there are only two companies (ISI licence holders) which can supply reflectors to this organised and unorganised industry. The third licence holder is a Delhi-based industrial unit.

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“We have no issues in installing reflectors, but the hiccup is delay in supply. In Ludhiana, there are only two units holding valid licences as of now and they take advance payment for supplying reflectors. They give us a 15-day waiting period to deliver the goods. We find their rates too high but have no choice. Last week a special annual general meeting of United Cycle and Parts Manufacturers’ Association (UCPMA) was held and I had highlighted this problem on behalf of the small scale industries,” said Rajesh Bansal, president of Small Scale Manufacturers’ Association, while speaking to The Indian Express.

He said, “The 10-reflector pack is available in the range of Rs 55 to Rs 60 and this pack has to be supplied to the bicycle dealer while selling our stock. Without reflectors, bicycles can’t be sold now. Our business is suffering. We can’t sell bicycles due to the delay in supply of reflectors. The long waiting period to get the supply (reflector) is adversely affecting our bicycle turnover.”

Sources revealed that large units are easily getting the reflectors.

Bansal said, “This is a step to harm the small industry which sells cheaper products in the absence of reflectors that have few takers. It’s only natural that big brands are being preferred by consumers in such a scenario.”

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Badish Jindal, president of All Industries and Trade Forum, said, “How can two companies cater to thousands of units. The central government must look into this chaos.”

Meanwhile, three more Ludhiana units have applied for licence now.

Manjinder Singh Sachdeva, senior vice-president of UCPMA and director of Citizen Buechel Bikepart Pvt Limited – one of the suppliers of reflectors – said, “In January this year, the final extension to install reflectors on bicycles was given till June 30. However, most units were assuming that another extension would be given and so they were not fully prepared to meet this challenge. Now, all of a sudden, a lot of bicycle manufacturers have given orders for reflectors and so it’s taking some time to deliver the goods. Three more entities will soon become ISI licence holders for supplying reflectors and this will streamline the system. They should have an easy ride in a few weeks’ time. A number of companies are not even aware that this provision is only for adult bicycles. I am also exporting reflectors. Had there been a shortage, I would not have been able to export them. There is no dearth of reflectors. Ludhiana manufactures 1.5 crore bicycles per annum out of which reflectors have to be installed only on 1.10 crore bicycles and we have enough stock. Soon more licence holders will start supplying reflectors.”

It may be noted that only ISI-marked reflectors can be installed on bicycles. The first installation of bicycle reflectors was to be done on September 1, 2016, but the industry kept on extending it on one pretext or another. The rule to install reflectors was made looking at the number of deaths of cyclists on roads. As of now orders are only for new bicycles and not for existing ones already in the market.

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