Bicycles in Russia

2023: Reduction in bicycle production by 62% to 545.3 thousand units

In 2023, approximately 545.3 thousand bicycles were produced in Russia. For comparison, in 2021, the volume of output reached 1.43 million units. Thus, in two years, the fall was 62%. Such a sharp decline is explained by a violation of the supply chains of imported components against the background of the emerging geopolitical situation. Market statistics are provided in the BusinesStat review published on July 10, 2024.

The data covers vehicles of various types: children's two-wheeled bicycles, sports bicycles (including racing and mountain bicycles), as well as transport bicycles (two-wheeled models for adults to travel to work, study or on business). In all cases, options without an engine are considered. In addition, three-wheeled and other bicycles are taken into account (single-wheeled and four-wheeled, velo-scooters, joggers, unicycles, cycle cars). Key players in the Russian market include Baltic Zvezda, Velkom-Impex, Velomotors, Invelo, Matipro, Parma Production Company, Siberian Bicycle Plant, TD Velnar, Terminal - N, Forward.

In 2019, about 1.5 million bicycles were produced in Russia. In 2020, the volume of output decreased by 28.4% - to 1.07 million units. Due to restrictions in the context of the COVID-19 pandemic, large domestic manufacturers have increased costs. At the same time, due to the increase in the cost of metal in the global raw materials market, prices for components have increased. In 2021, the decline was replaced by an increase of 33.3% - up to 1.43 million units.

In 2022, a fall of 27.4% followed with a final result of 1.04 million units. And in 2023, a reduction of another 47.4% was recorded. The imposition of sanctions led to the lengthening of supply chains and an increase in the cost of delivery. Bank payments between countries have become more complicated.^[1]

2022: 30.4% decline in sales to 3.1 million units

In 2022, 3.1 million bicycles were sold in Russia, which is 30.4% less than a year earlier. Market size has reached a minimum value, analysts at BusinesStat say in their study published in May 2023.

Experts linked the fall in demand for bicycles to the economic crisis in Russia, caused by the aggravation of foreign policy relations and sanctions, led to a decrease in the disposable income of Russians. Consumption was redistributed in favor of the most necessary goods and services. The bike is not an essential item and in the face of declining incomes, many consumers have chosen to postpone the purchase of a new bike indefinitely, the researchers explain.

Bicycle sales in Russia fell to a minimum in 5 years

Imports account for about 70% of bicycle sales in Russia. The imposition of sanctions led to a violation of supply chains that were hardly restored after the pandemic. Supply chains have lengthened, and the cost of delivery has increased. A number of global container carriers have suspended work in Russia, and Taiwanese, European and American factories have suspended shipments, BusinesStat noted.

In 2022, export deliveries of bicycles from Russia decreased by 43.9% compared to 2021. The beginning of the special operation and the introduction of anti-Russian sanctions led to a break in business relations with most countries of the world. Companies faced difficulties paying for goods due to sanctions against Russian banks, severing supply chains and ties with suppliers. This led to a drop in domestic bicycle production in Russia and a decrease in export supplies.

In 2021, Russian companies removed bicycles from the country for a total of $18.3 million, which is 2.3 times higher than the level of 2018. In 2022, the turnover of bicycle exports from Russia decreased by 37.8%, to $11.4 million, due to a decrease in supplies.^[2]

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