Bulgaria could emerge as the Most Significant EU Bike Manufacturing Center Soon

Bulgaria already occupies a top position as a bike and bicycle manufacturer in the EU. With a record of about one million units being supplied to other European countries, it is certain that the on-going advancements and modernization of production plants will increase the production capacity in this industry.

It will be another successful year for the bicycle manufacturers in Bulgaria due to the high export figures. The bicycle products are sent to EU markets and Switzerland. The export figures are similar to the records posted for the previous year. And the inclusion of production plants for e-bikes has remarkably increased the revenue of the companies. The reports from Eurostat indicate a decline in the export volume which was 7.7% from 873,799 in 2015 to 806,096 in 2016. However, the local production of bicycles is on a steady increase.

The Increase in Bike Production

In 2016, the Association of Bicycle Producers of Bulgaria (ABPB) reports a 0.8% increase in production which indicated a rise from 940,345 units produced in 2015 to 947,990 units in 2016. It is quite a minimal volume. However, the number of e-bikes produced between 2015 and 2016 have almost been doubled to reach 20,000 units, with a reported average selling price of €750. The total value recorded as the production costs is €136 million while €15 million was realised as the revenue from sales. In 2016, the average cost of a bicycle manufactured in Bulgaria was €143.

According to the reports published by Eurostat from January to August 2017, Bulgaria exported as many as 491,966 units of bicycles valued at €81.5 million. This is similar to the export values reported for the previous year. At a rate of €165, there was an increase in the average value due to the rising demand for the bikes. The average value was observed to be 15.4% higher in 2017. Germany remains one of the major markets for the Bulgarian bicycles with a demand value of 44%, France comes second with its demand value reported to be 15%. Bulgaria exports the bicycles to other EU countries with lower demands for bicycles.

Growing capacity

Two new production facilities are currently being constructed in Bulgaria by local bicycle manufacturers. The previous production facilities have also reported the receipt of huge investment funds to increase their production capacities. These investments are aimed at supporting the improved management structures at these facilities to reduce lead times for bicycles and the related components. The ABPB’s Secretary General Borislav Georgiev in his statement emphasized the crucial role of the EU trade defence measures in establishing a fair business environment for the EU and non-EU producers. These efforts have made Bulgaria more competitive in the rapidly changing market.

The Bulgarian Domestic market

While the production of bicycles in Bulgaria has increased, it has also been observed that the use of these bicycles by Bulgarians has also increased. The Bulgarian Association of Bicycle Producers reported an increase in the sale of bicycles from 53,000 units in 2015 to as high as 79,000 units in 2016 with a total market value of €10 million. The highest demand in the local market was for Bulgarian and Chinese bicycle products. However, the demand for the e-bikes in Bulgaria is quite low when compared to other European countries.