India (and Bangladesh) bicycle tyre manufacturers are currently spending millions is adding production capacity and upgrading their production standards in an effort to gain stronger market share in the European market. Rising prices and longer lead times from China are providing them with the opening to attempt this.

India’s largest bicycle tyre/tube manufacturer, Ralson (India) Ltd, with an annual production of 35 million bicycle tyres and 45 million tubes, is increasing the capacity of its huge main facility by 20%.

Other companies are investing heavily in expansion of production facilities, including buying up equipment from defunct European manufacturers. In Bangladesh Meghna Rubber Industries Ltd. is also ramping up its manufacturing capacity.

The company is importing machinery from Taiwan and is investing US$ 1.2 million in production facilities. It maintains rubber is cheaper in Bangladesh compared to neighbouring countries – India & Sri Lanka. Therefore, it is makes good business sense to manufacture in Bangladesh and export to the international market. The company currently produces 12, 000 tyres a day. Australian market next?