‘E-Cycles Are The Future’: How Cycle Industry Is Investing Big On Eco-Friendly Commute With Tech Innovation

Seeing the global trends, the cycle industry has pinned huge hopes on the growth potential of e-cycles in India.

Cycles companies are coming up with e-cycle models banking on the projected boom for the eco-friendly two-wheeler.

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Ludhiana: As the world looks to battle the impacts of pollution and the global climate crisis caused by reliance on fossil fuels and traditional means of commute, a gradual shift towards electric vehicles in the transportation space is widely talked about as the next big step to change how people travel and rely on traditional fuels. In this revolution, e-cycles and e-bikes will have a major role to play, industry insiders say citing projections of the industry’s growth in India and the world over.

In India, the market of bicycles is growing, claim the Indian companies in the business. They say the COVID pandemic changed things significantly and cities and metros are now trying to make space for cycles on their roads.  

E-Cycles Are The Future, Companies Say

Cycles companies claim people are gradually opening up to the eco-friendly two-wheeler, and are accordingly coming up with models banking on the projected e-cycles boom.

“The adoption of e-cycles has picked up pace over the last few years due to their being eco-friendly and significantly more cost-effective compared to traditional ICE (internal combustion engine) vehicles, especially for short distance commutes,” Aditya Munjal, the director of Hero Cycles, which has its headquarters in Punjab’s Ludhiana, told ABP LIVE. 

“With the belief that e-cycles are the future, we were the first to design and launch them in India in the year 2018 and we continue to be the market leader, holding about 70 per cent of the market. With changing consumer habits and preferences, we realized that cycles have multipurpose utility and are also a preferred mode of travel for short-distance commutes. This is where we came up with the Hero Lectro and Cargo ranges of products which caters to such needs,” he added.

Firefox Bikes, another player in the industry, also feels e-cycles are poised to be “a game-changer in the quest for a more sustainable and environmentally friendly future.”

CEO Sriram Sundresan said: “We have already made significant strides by launching India’s first automatic smart bike, Avatar, built on the Enviolo CVP Hub technology. We are also expanding our e-bike category with the launch of Urban Eco, India’s first app-controlled e-bike, which is based on path-breaking German technology and holds certifications by CE, REACH & RoHS.” 

The current era demands immediate attention to combat the negative impacts of climate change, which are already evident. It is crucial to acknowledge the growing environmental consciousness and adoption of sustainable practices in our nation.

E-cycles offer a promising solution as they possess long-lasting battery life, eliminate the need for fossil fuels, and emit no harmful pollutants. Consequently, e-bikes present a practical transportation alternative that not only promotes environmental preservation but also reduces pollution levels, safeguarding people's health and well-being.

Tech Innovation In E-Cycles

Companies are looking to innovate in the e-cycle space to be able to woo consumers by introducing tech-savvy features that could not be dreamt of without the strides made in smartphone technology.

“Urban Eco smart bike can be fully controlled through the Firefox Fitt app, providing users with real-time updates on their speed, distance covered, calories burnt, and heart rate, along with the option of five pedal-assist modes to choose from, depending on the terrain,” said Firefox's Sundresan.

In this regard, Hero Cycles also is said to have made investments worth Rs 400 crore in developing their “state-of-the-art facility” located at Hi-Tech Cycle Valley in Ludhiana with a planned capacity of 6 million cycles annually.

Munjal attributed the rising demand for bicycles to more and more Indians “re-evaluating and re-imagining local commutes, inter-city travel, or fulfilling micro-mobility needs which led to the creation of a new category and transforming the traditional cycles sector with cutting-edge technology and innovation”.

At Nascent Stage In India, But Worldwide Adoption Of E-Cycles Shows Promise

Talking specifically on the trends in India, Hero Cycles' Aditya Munjal said e-cycles are still at a very nascent stage in the country, with the market size “doubling annually” in the past few years. He expressed confidence in the potential citing a report by the Federation of Indian Chambers of Commerce & Industry (FICCI) and Klynveld Peat Marwick Goerdeler (KPMG) where “estimates suggest that India’s e-cycles market would be over a million units in a few years’ time with a CAGR (Compound annual growth rate) of 55 per cent over the next five years”.

“Studies forecast that cycling in the post-pandemic world is set to increase significantly with a focus on e-cycles. Already, Europe is witnessing a more than 50 per cent contribution of e-cycles to the total industry, with an increasing number of people switching to or adding an e-cycle to their existing options,” he added.

About this, Firefox said the company is closely monitoring the evolving mobility trends, “which are leaning towards electric bikes and advanced technology”. “To stay ahead of the curve, we are focusing on expanding our tech portfolio and introducing innovative and interactive products that cater to the unique needs of Indian consumers,” said Sundresan.

Current Market For Bicycles, Consumer Base Companies Focus On

According to Munjal, Hero Cycles is seeing the highest growth in the Kids and MTB (mountain bikes) segment, which is essentially children and youth. 

“As per census data we have seen almost over 20 crore people travel short distances (less than 20km) to commute every day in India,” he said, emphasising that e-cycles are the perfect solution for this mode of commute. “We have not even scratched the surface yet with penetration in the segment.”

Firefox too is focussing on children, youth, and fitness enthusiasts as a consumer base within the bicycle business.

Sundresan said their consumer base comprises young, urban individuals “who prioritise an active lifestyle, adventure, fitness, and style”. “In addition to offering premium quality bikes, we are also expanding our product range to cater to the needs of women and kids,” he added.

How COVID Pandemic Impacted Demand

According to the Hero Cycles director, the COVID pandemic served as a major trigger for people to prioritise a healthier and more sustainable lifestyle, with a huge number of people adopting e-cycles as an option for various use cases. “The cycle industry recorded massive sales of cycles in the country during the pandemic and there was a shortage of supply to meet the demand,” he said.

Firefox too said the Coronavirus pandemic made the brand focus on tech integration in its products. “As a brand, we have witnessed the highs of the brand during the pandemic, when people wanted to enjoy a breath of outdoors amidst the lockdown cycling came as a rescue to many. Post the pandemic, we recognised the boom in technological revolution, leading to a surge in online shopping and a demand for a seamless omnichannel experience,” said Sundresan.

He added: “To cater to these changing needs, we have invested in state-of-the-art technology to provide a personalised experience across all touchpoints.” 

How India Is Becoming More Cyclist-Friendly

The cycle industry claims several cities are now trying to build cyclist-friendly infrastructure. 

“As a country, we are seeing some cities start to actively invest in cyclist-friendly infrastructure; in-fact several are also taking active steps to improve civic infrastructure,” said Munjal as he talked about the adoption of e-cycles picking up pace.

He said the upfront cost of purchasing an e-bike may be slightly higher, but the total cost of ownership is significantly lower than other vehicles while also being much easier to maintain.

“To help citizens take advantage of this, various state governments, such as Delhi, are introducing subsidies for e-cycles under their EV (Electric Vehicle) policy. This is a forward-thinking policy decision, and we hope for similar policies being implemented by other states and the Central Government, which will likely unlock the potential of e-cycles and positively contribute to India’s growth,” he added, expressing hope for the upcoming phase in sustainable travel.