With about ₹900 crore worth trade deals with China being reduced in a phased manner, Hero Cycles is moving towards self-reliance, its Chairman and CMD Pankaj Munjal said.
Speaking to ANI on the decision to phase out the deals with China, Munjal said: "Our decision is well thought through. We used to buy from various parts (of the world) including China and import vehicles, bicycles and high-end bicycles. Now, we are designing them in our German R&D facility. Detailed engineering, components, and frame we are doing by ourselves. We are localising them. In a phased way, we will be self-reliant."
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When asked about whether orders are cancelled from China, Munjal said, "We had a buying plan of about ₹900 crores which will be done in India. It will be reduced in a phased manner. We have changed our strategy, we will be self-reliant."
He said every crisis provides a new opportunity.
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"WhatsApp was born, Uber and other new big companies started. This time after post lockdown, we are finding a big surge in cycling. The world over, cycling is safe, where there are tracks of cycling, the repair is good, there it is surging," he said.
"Our daughter company in England, it has 600 per cent growth. Our daughter company in Germany is also making record sale. In India, there are segments like migrant labourers who have gone to Bihar, Jharkhand, West Bengal Odisha and Assam. They are not planning to come back for some time, so they are buying there," he added.
Munjal said children's segment, which is a very large segment, it is also growing.
"We are now looking for fitness. People who have been going to gyms are opting for cycles. So India is getting into fitness year. Hero's market share is overall 44 per cent and our aim is capturing half the market," he added.
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.