Hero Cycles, one of the leading bicycle manufacturers in India, has cancelled its upcoming trade ties worth Rs 900 crore with China, announced company's Chairman-cum-Managing Director (CMD) Pankaj Munjal on Friday.
“In the coming 3 months, we had to do business worth Rs 900 crore with China, but we have cancelled all those plans. This is our commitment to boycott Chinese products,” Indian Express quoted Munjal as saying.
He stated that the company has cut ties with their Chinese counterparts and are looking for new markets now. Munjal said that Hero Cycles is planning to set up their plant in Germany to cater to the European markets.
Adding that Hero Cycles was moving towards self-reliance, he said, "We have launched Hero electro e-cycle which has 72 per cent market share in India. We are making cycle for different segments like e-bike for the purpose of home delivery. We used to buy various parts in China. Now bicycles and high-end bicycles, we are designing in our German R&D facility."
"We are developing vendors. In a phased way we will be self-reliant. We had a buying plan of ₹900 crores that will be now done in India. We will be self-reliant and that is our strategy," he added.
Pankaj Munjal said the people were looking at Vietnam, Thailand, Taiwan for shifting manufacturing facilities out of China and India has an opportunity to increase its market share in cycle industry. "With media bashing of China, people are looking at Vietnam, Thailand, Taiwan to some extent and to India. We have to be competitive. We stand a great chance," he said.
The company's move comes amid tensions between India and China after the face-off at the Galwan Valley in Eastern Ladakh and later the "digital strike".
(With ANI inputs)