The Budget proposal to enhance basic customs duty on bicycles from 10 per cent to 30 per cent and on bicycle parts from 10 per cent to 20 per cent will push up the prices of high-end bicycles, said Mr D. Raghuram, President, TI Cycles.
“The 20 basis point increase will make high-end cycles quite expensive. It will be a big blow for both consumers and the industry. This comes at a time when the high-end segment was really catching on, especially among cycling enthusiasts.”
TI Cycles sells a range of imported bicycles such as Canondale, Bianchi and Mongoose, in the price range of Rs 20,000 to Rs 1.5 lakh. Back of the envelope calculation talks of a minimum impact of Rs 4,000.
“This announcement is sudden. We obviously have to share the burden with the consumer. We need to assess how much to pass on to consumers and what steps we need to take to minimise the impact,” said Mr Raghuram.