Ludhiana, March. 4 (PTI): The bicycle Industry here will raise prices by 2-3 per cent on all models following the hike announced for Hot Rolled coils, a key input in manufacturing a bicycle, by steel producers.

"We will soon have to raise the bicycles prices by 2-3 per cent because of the increase in input cost caused due to hike in HR coil prices," Indian Bicycle Manufacturer Association President Satish Dhanda told PTI here.

Domestic primary steel producers had recently jacked up the prices of HR coils ranging from Rs 700-1000 MT.

According to bicycle manufacturers, the price of standard bicycle would go up by Rs 50 to Rs 70 per bicycle, while the prices of MTB and fancy models would be increased between Rs 70 and Rs 100 per unit.

HR coils accounts for almost 80 per cent in the manufacturing of a bicycle and bicycle parts and any increase in its price directly impacts the cost of production of a bicycle.

Considering the hike in HR coil prices as a major blow to the industry, bicycle manufacturers have also asserted that the increase in input cost would hit the exports of bicycle.

"We are already facing stiff competition at international level as our bicycle and bicycle parts are expensive by almost 40 per cent against Chinese cycles. This hike would further encourage the import of Chinese bicycles into the country," said another bicycle manufacturer.