Production of bicycles is constantly on the decline for last few years and during 2010-11, bicycle production was recorded at 284,865 down by 105,057 bicycles as compared to 2009-10 production. According to industrial production statistics, in 2009-10, bicycle production was recorded at 389,922.
During .2005-06, bicycle production stood at 449,400 although the local bicycle industry is capable of producing 1.45 million bicycles per annum. Bicycle retailers said that the trend to use bicycles has entirely changed in Pakistan and people now prefer to use motorcycles instead of bicycles and even do not use bicycle for short distance.
Pakistan is a major manufacturer of bicycles but the usage per capita is low as compared to countries like India and China. Around 20 years ago, there was, at least, one bicycle in every home in cities and rural areas. Children use bicycle for schoolgoing, and for the purpose of distributing milk etc. Now they use motorcycle for these purposes.
This has resulted in a sharp decrease across the country in demand of bicycles and ultimately production of the bicycle declined sharply, especially during the last decade. At the birth of Pakistan there was not a single factory in the country to produce bicycles and its parts.
Taking advantage of the situation, some major importers brought in bicycle from abroad and such imports were passed on for sale to retailers. Initially, only a few spare parts of bicycles were manufactured locally and about 90 percent spare parts were imported from abroad. With the passage of time, the situation started improving and today almost 98 percent bicycles spare parts are being manufactured in house or through vendors.
In 1998-99, first time $11,000 worth of bicycles was exported from Pakistan. The bicycle retailers said that another reason of decline in bicycle production is mass smuggling of Chinese bicycles at throwaway prices. They urged the government to take appropriate measures to save the indigenous bicycle industry.