Exclusive: Interview With CEO Of Firefox Bikes: On FAME 2 Subsidy Reduction, Growth Plans, And More

From being solely for commuting to becoming popular lifestyle choices, bicycles have come a long way in India. Firefox Bikes is one of the popular Indian bicycle brands that caters particularly to the premium end of the segment. The bicycle maker has also recently entered the fast-growing e-cycle segment with two products: Firefox Adventron and Firefox Urban Eco. We got a chance to catch up with the company’s CEO and Director Sriram Sundresan, and here are the key highlights of the interaction:

Impact of COVID-19

While most of the auto industry came to a stand-still, the bicycle market saw a massive resurgence during the COVID period. Sriram says, “So two years of COVID, when lockdowns happened, there was a lot of spare time with people. All avenues of entertainment, which were movies, going out, travel, everything was shut. Even gyms were shut. So, cycling saw a huge spurt, kind of a one-time offer where we got almost the next three-four years of sales in two years.” Sriram also revealed cycling was the safest way of staying fit as opposed to going to crowded gyms. 

While the cycling industry witnessed a massive surge in those two years, the sales have normalised in the last two years. Sriram assures, “But the good part is that the market has landed at a level which is better than what it was pre-COVID.” 

On electrification in India

According to Sriram, Europe has been the biggest lead when it comes to electrification. He believes that whatever happens in the west catches up in India eventually. The continent’s favourable weather has also encouraged Europeans to use their e-cycles for commutes. He also reveals that while the Europe market leans towards the commuter side, the market in the United States “has grown through the recreational route”, with mountain e-bikes and performance electric cycles. That said, what the Indian market is witnessing is a combination of both (commutes as well as lifestyle segment). Sriram says, “Right now the (e-cycle) market is very small in India. The adoption is slowly picking up, but we believe in the years to come, this is going to really catalyse.” 

“Right now what we believe is that the e-cycle is a small market, but it will jump. In the next five years, we believe it will almost double, or even triple. That’s a conservative estimate…”

Effects of FAME 2 subsidy reduction and second-hand scooter market

Sriram says in the e-scooter market, the prices are going up. He cites the FAME 2 subsidy as an example and states that it’s an evaporating benefit, and will (likely) be phased out in the next few years. He mentions that once the subsidy ends, the price difference between the electric scooters and e-cycles will be very large. Though the spotlight right now is on the e-scooter market, once the dust settles down over a period of time, Sriram believes e-cycles will be a formidable category in India.

He also talks about the second-hand scooter market wherein a typical second-hand scooter sells in the range of 30-60,000. He points out that a lot of e-cycles fall in that category, so several second-hand scooter buyers are also showing keen interest in e-cycles. He says even a 10-20 percent conversion from the 30-40-odd lakh unit second-hand scooter market will be a significant jump to the e-cycle market. 

Low-speed Chinese e-scooters vs e-cycles

Sriram draws parallels between Chinese e-scooters and the smartphone market wherein the sudden influx of cheap Chinese smartphones took the market by storm. However, consumers realised the issues with durability as well as safety concerns. “We’ve already seen a lot of e-scooters, batteries burning etc., there’s a lot of heat in the e-scooter segment to prove the safety measures”. He mentions that when it comes to e-cycles, Firefox makes them in compliance with global safety standards, that the e-cycles are a safe product, and that there have been no issues across the globe. It’s pretty evident as the battery capacity of e-cycles is not very high, thereby ensuring ease of thermal management. “We believe we will be the safer option, more trusted option, and (with) better aftersales service, and range which these Chinese (e-scooter makers) can’t provide.” Sriram is bullish on the safety and aftersales aspect of the group’s e-cycles. 

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Sriram says over a period of time, they will start working on different form factors of e-cycles too. Since low-speed e-scooters are essentially an e-cycle without pedals, Sriram reveals, “We are looking at form factors also, which resemble closer to a scooter or a moped, then the adoption could be faster. 

With e-cycles becoming increasingly popular in the leisure segment, Firefox Bikes seems to have a potentially bright future. Recently, the company launched India’s first CVT-equipped bicycle, the Firefox Infinity 700C. It’ll be interesting to see what the brand comes up with next.