GET IN TOUCH
- Please wait...
Bicycles are Bangladesh’s most exported product within the light engineering (LE) sector, accounting for 27.53% of the sector’s total exports in 2022. That year, global bicycle trade reached USD 11 billion, with Bangladesh contributing USD 155 million. Key global exporters included China, Taiwan, and Germany—together representing 60.24% of total trade. Among them, China dominated with a 31.54% share, aided by government subsidies, supportive trade policies, and a robust manufacturing ecosystem. These advantages have created stiff competition for bicycle manufacturers in both the EU and Bangladesh.
In 2022, the European Union (EU) accounted for 41% of global bicycle imports. Within Asia, Cambodia was a leading supplier to the EU, while in Europe, Germany, the Netherlands, Italy, and Portugal were prominent exporters. Despite being the largest global exporter, China held just 3.21% of the EU’s import value—largely due to the EU’s anti-dumping duties designed to protect domestic manufacturers. These measures have helped level the playing field for other exporters like Bangladesh. In January 2025, the European Commission extended its anti-dumping and anti-subsidy duties on Chinese bicycle imports, further strengthening this position.
Bangladesh exports bicycles to numerous EU countries, including Germany, Austria, the Netherlands, Denmark, Poland, Sweden, Ireland, Belgium, Spain, Slovenia, Finland, Slovakia, France, Italy, Greece, and Czechia. In 2022, the EU imported USD 104.5 million worth of bicycles from Bangladesh—67.4% of the country’s total bicycle exports. Germany was the largest single importer, accounting for 46% of Bangladesh’s total bicycle export volume. In fact, among non-EU suppliers, Bangladesh ranked second after Taiwan in 2022, with China coming in third. Over the past decade, Germany has consistently imported more bicycles from Bangladesh than from China—a trend likely to continue with the renewed anti-dumping measures.
Austria also illustrates Bangladesh’s competitive edge. In 2022, 5% of Austria’s total bicycle imports came from Bangladesh, compared to just 0.07% from China. Historically, Bangladesh has maintained a higher market share than China in Austria. Meanwhile, the Netherlands—with its strong cycling culture and over 24 million bicycles among 18 million residents—imported USD 799 million worth of bicycles in 2022. Of that, Bangladesh supplied USD 4.45 million, while Chinese imports made up 10% of the total. In Sweden, Bangladesh accounted for 2.22% of bicycle imports, compared to China’s 7.03%.
Germany, Austria, and the Netherlands are crucial markets for Bangladesh. With anti-dumping duties on Chinese bicycles extended, Bangladesh is well-positioned to strengthen its foothold in the EU and expand its market share. These tariffs create a more level playing field for Bangladeshi exporters and help maintain competitive pricing in a market that would otherwise be flooded with cheaper Chinese products.
Without these duties, Chinese bicycles could be priced 10–20% lower in the EU market, significantly undercutting competitors. The duties currently range from 10.3% to 70.1% (anti-dumping) and 3.9% to 17.2% (countervailing), depending on the exporter. For example, a Chinese-made Giant bike priced at €1,499 could drop to around €1,292 without these tariffs—posing a real threat to Bangladeshi exporters, who often face higher production costs due to reliance on imported parts.
However, Bangladesh benefits from the EU’s Generalized Scheme of Preferences (GSP), particularly the Everything But Arms (EBA) initiative, which grants duty-free and quota-free access to EU markets for Least Developed Countries (LDCs). This trade advantage allows Bangladesh to offer competitively priced bicycles despite its structural cost disadvantages.
Moreover, the growing popularity of e-cycles in Europe presents new opportunities. In 2024, Pran-RFL Group became the first Bangladeshi company to export e-cycles to Germany, with plans to expand into the UK and Brazil. As the demand for electric bicycles rises, Bangladeshi manufacturers can capitalize on both favorable trade policies and shifting consumer preferences.
While Bangladesh’s share in the global bicycle trade remains under 2%, the extension of EU anti-dumping duties on Chinese bicycles offers a strategic advantage. With strong export performance in Germany, Austria, and the Netherlands, and growing interest in e-cycles, Bangladesh is well-positioned to expand its presence in the European market. Continued support through trade incentives and product diversification—especially into high-growth areas like electric bicycles—can help the country secure a larger share of this lucrative sector.
https://atlas.hks.harvard.edu/countries/50
https://ec.europa.eu/eurostat/web/products-eurostat-news/w/edn-20230602-1
Our experts can help you solve your unique challenges
Stay up-to-date with our Thought Leadership and Insights
