Hero Cycles cancels business with China worth Rs.900 cr; eyes new and flourishing markets

One of the leading bicycle manufacturers in India, Hero Cycles, has announced the cancellation of planned business involving China worth Rs. 900 crore. This development comes as a show of the company's commitment to boycott Chinese products after the LAC standoff in the Galwan Valley. 

After breaking the trade ties with the Chinese companies, Hero Cycles is looking for a new market, Company's Chairman-cum-Managing Director (CMD) Pankaj Munjal said. As Germany has the top market in cycle manufacturing the company plans to venture into the European markets by setting up its plant in Germany and this will also be a substitute for China.

Mentioning that demand for bicycles has increased worldwide over the past few months, Munjal said that Hero Cycles is expanding its capacity to cater to this increasing demand. Expressing concern over the small companies that are adversely affected due to the Coronavirus lockdown, Munjal extended technical support to these companies so that they can manufacture high-end bicycle parts that were being imported from China.

READ | Dalai Lama turns 85; sends birthday message after needling China over visiting Taiwan

'Boycott China' Movement in India

A day after the Galwan Valley clash at the LAC which led to the martyrdom of 20 Indian soldiers, Confederation of All India Traders (CAIT) on June 16 announced the national movement to boycott Chinese goods and products and urged to encourage Indian goods. Soon after this announcement, anti-China sentiment took over the country and many Indians came out on streets to protest against the Chinese goods in India.

The latest to this movement was the ban on 59 Chinese Apps including TikTok by the Centre government on June 29.  The move was taken to protect the sovereignty of Indian Cyberspace and to ensure the interests of crores of Indian mobile users. The government has stated that this was a major blow to China’s Digital Silk Route ambitions. 

Further on from this, a number of major conglomerates have vowed to reduce their business with China, with the JSW Group resolving to reduce imports from the current $400 million to nil in two years, whereas various contracts including PPP ones have been cancelled.

READ | 'Enjoy the view': China's stooge replies meekly as US Navy brushes off missile threat

READ | Taiwan scores diplomatic win over China; establishes relations with Somaliland

READ | US Navy replies to China's 'aircraft carrier killer' missile threat; says not intimidated