1. How did TI cycle loose its way?

TI Cycles lost its way by failing to understand the changing values and needs of its customers and the
bicycle market. While it continued to manufacture elegant, high-quality bicycles based on British
designs, the market was shifting towards heavy-duty, low-cost bicycles that could meet specific Indian
needs. Hero Cycles tapped into this market segment and became the largest manufacturer of bicycles
in India. TI Cycles also failed to see the merits of buying components from outside suppliers, unlike the
newer bicycle arms assembling a range of products using highly engineered components made by
others. As a result, TI Cycles slipped to the third position in the industry, with its sales in the domestic
market flattening out.

Some of these challenges may include:

• Intense competition from local and international brands: TI Cycles is just one of many players in
the Indian bicycle market, and it may struggle to differentiate itself in a crowded and
competitive space.

• Price sensitivity among consumers: As mentioned, most bicycles sold in India are priced below
Rs. 5,000 which made it challenging for TI Cycles to command premium prices for its products.

• Infrastructure limitations: Due to India’s infrastructure, in market limited demand for high-end
bicycles only, which limits the TI Cycles’ ability to grow its premium product lines.

• Evolving distribution channels: With the rise of e-commerce and online marketplaces, the way
that bicycles are sold and distributed is also changing, due to the s challenges faced by E-
Commerce and Online market, TI cycles need to invest more on distribution channels and
accordingly price increases.

2. Analyze the bicycle market in India.

India Bicycle Market varies depends upon the below mentioned factors:

✓ Increasing demand: India’s bicycle market has been growing steadily in recent years, and there
has been an increasing demand for bicycles due to several factors such as increasing
environmental awareness, rising fuel prices, and the need for an affordable mode of
transportation.

✓ Market segmentation: The market can be segmented into several categories such as MTB
(mountain bikes), road bikes, city bikes, hybrid bikes, and more and demand varies based on
the target audience and geographical location.

✓ Competition: The bicycle market in India is highly competitive with several local and
multinational brands vying for the market share. Brands such as Hero Cycles, Avon, Firefox, and
BSA are some of the popular brands in India.
✓ Government Initiatives: Various government initiatives like promoting cycling as a mode of
transport through cycle sharing schemes and bike-lanes, are contributing to the growth of the
bicycle market in India.

✓ Affordability: For a country where most people prioritize affordability, bicycles are still an
affordable mode of transportation, price-sensitive customers prefer domestic brands which
offer great value at affordable prices.

✓ E-Bikes: With the increasing trend of electric mobility in India, there is growing demand for e-
bikes. E-bikes are expected to be the future of urban mobility in India.