The Indian bicycle market is clearly on an upward trajectory, estimated at about ₹ 24,000 crore in 2024 and expected to grow steadily through the decade.
Source: imarc
Types of Bicycle Business Models to Consider
For entrepreneurs considering bicycle business ideas, this means a real opportunity exists. You’re not limited to selling bikes; you can build services, parts, rentals, or experiential offerings. The key is identifying where riders are underserved, whether that’s in customization, rentals, tech-enabled repairs, or institutional supply, and positioning yourself there with insight, not just inventory.
Manufacturing of Electric Bicycles and Specialized Repair
Entrepreneurs can establish small to mid-scale e-bike assembling units, catering to battery-powered pedal-assist cycles for daily city travel or recreational purposes. These bicycles find favour with students, young professionals, fitness commuters, and eco-conscious riders. Beyond manufacturing or assembling, offering specialized repair services for motors, batteries, and controllers builds a recurring income stream and customer loyalty.
Investment: ₹18 lakhs to ₹2 crores, depending upon assembly vs. full manufacturing
Market: Urban commuters, colleges, gated communities, corporate mobility schemes, and rental fleet operators.
Profit Margin: 15–28% on sales + recurring repair/service income
Specialized Bicycle Component Manufacturing
Instead of making full bicycles, the entrepreneurs can make high-demand components such as rims, pedals, tyres & tubes (using natural rubber), cranksets, spokes, chains, or brakes. This business is ideal because the bicycle components market is stable and less seasonal; components are needed year-round for both new bicycles and replacements.
Investment: ₹12 lakhs to ₹1.8 crores (based on scale and machinery)
Market: Local bicycle retailers, OEM manufacturers, repair shops, export dealers, and e-commerce distributors
Profit Margin: 18–30% depending on materials, production efficiency, and distribution reach
E-Rickshaw Assembly
E-rickshaws have become quite ubiquitous in Indian cities and towns with increasing fuel prices and the drive for clean public mobility. Instead of manufacturing everything, there is enough scope for entrepreneurs to enter this market through assembling by sourcing motors, chassis, wheels, and battery units from reputed suppliers and assembling them locally. The assembly model reduces initial costs while allowing options for customization-reinforced chassis, comfortable seating, and longer-lasting batteries.
Investment: ₹20 lakhs to ₹1.5 crores (depending on production scale and battery type)
Market: Auto drivers, small fleet owners, last-mile delivery operators, and public transport zones
Profit Margin: 12–22% depending on battery quality and volume of orders
Bicycle Restoration & Customization Service
As more urban cyclists and hobby riders have begun craving truly unique bicycles that reflect their identity and riding objectives, services for the same include repainting, custom decals, handlebar swaps, gear tuning, seat upgrades, and even frame reconditioning. This is a fantastic venture to engage skilled technicians and creative enthusiasts. The workshop can easily act as a community hangout point where weekend ride clubs or basic repair workshops can be organized to build brand loyalty.
Investment: ₹3 lakhs to ₹25 lakhs (workshop setup, tools, paint equipment, spares stock)
Market: Urban cycling communities, college students, fitness riders, vintage collectors, and adventure cyclists
Profit Margin: 25–45% depending on customization complexity and brand positioning
Bike Repair Community Hub
This concept is part workshop, part community space. A DIY bike hub replaces the traditional workshop by letting cyclists use professional-grade tools and stands to fix or tune their bikes themselves with the help of a guide. You can charge per hour for usage of the workspace, have small paid workshops for basic repair and tuning, setting up of brakes and tyre patching, and sell spare parts and accessories. Membership plans monthly/annual help stabilize revenue.
Investment: ₹4 lakhs to ₹40 lakhs | space, tools, storage, branded community set-up.
Market: Urban cyclists, college students, cycling clubs, delivery riders, hobby mechanics
Profit Margin: 22–40% depending on membership adoption and accessory sales
Cycling Tour and Adventure Combo
A Cycling Tour & Adventure company arranges curated rides, weekend expeditions, and adventure trails for groups, tourists, and hobby cyclists. Packages might include guided trail rides, stopovers at points of scenic beauty, camping options, local food tours, and photography. Tie-ups with resorts, homestays, and cafes, together with travel influencers, can increase visibility while keeping costs variable and controlled.
Investment: ₹5 lakhs to ₹35 lakhs (bicycle fleet optional, but logistics, branding, and guide training needed)
Market: Young professionals, travel groups, fitness communities, tourists, expat groups, weekend explorers
Profit Margin: 20–38% per tour, and higher with premium adventure packages.
Bicycle Parts & Accessories E-Commerce Store
An e-commerce store dealing with bicycle parts and accessories lets an entrepreneur tap into this repeated demand, offering a selected online catalog. You can start by stocking fast-moving SKUs and dropshipping specialized parts such as carbon handlebars, clipless pedals, or imported drivetrain parts. Building trust through clear product descriptions, authenticity guarantees, and customer support is essential in this regard. Partnerships with cycling clubs, influencers, and repair shops can fast-track brand visibility.
Investment: ₹6 lakhs to ₹45 lakhs for inventory, website, warehousing, and packaging.
Market: Urban cyclists, touring cyclists, college commuters, delivery fleet users, cycling clubs
Profit Margin: 18–42% depending on sourcing and volume
Mobile Bike Repair Service
A technician travels with a portable toolkit to handle repairs such as brake adjustments, chain replacements, tube changes, and tuning. Advanced versions can also offer on-call fleet maintenance for food delivery companies or corporate bicycle fleets. Branding the service with a booking app or WhatsApp-based scheduling system can turn it into a local household name. You can charge per job or offer monthly service plans.
Investment: ₹2 lakhs to ₹18 lakhs (vehicle, travel kit, spare parts, branding)
Market: Office commuters, gated community residents, school students, delivery riders
Profit Margin: 28–55% depending on route efficiency and recurring plans
Subscription-Based E-Bike Rental
A subscription-based E-Bike rental model overcomes this with monthly or weekly rental plans that include a bike, its maintenance, battery swap, and repairs. The customers just ride and return; no long-term commitments. Students, office commuters in congested metros, and gig workers are the ideal customers in need of affordable mobility. An efficient service network and mobile servicing are critical to keeping downtime low.
Investment: ₹12 lakhs to ₹1.8 crores (fleet size dependent)
Target Market: Daily urban commuters, PG/hostel residents, corporate employee mobility programs, app delivery fleet riders
Profit Margin: 32–60% (higher with long-term fleet contracts and refurbished e-bikes)
Dockless Bicycle Sharing System
A dockless bicycle sharing system involves renting and parking bicycles anywhere within a specified zone with the aid of a mobile app. With no fixed docking stations, GPS-enabled bicycles can be unlocked via QR codes and tracked remotely. This model is most apt for university campuses, corporate townships, tourist zones, and high-density urban neighborhoods.
Investment: ₹18 lakhs to ₹3 crores (fleet size, GPS locks, tracking software, field technicians)
Market: University campuses, IT parks, tourist districts, metro station corridors, and gated communities
Profit Margin: 28–45% based on fleet utilization and maintenance efficiency
Eco-friendly Bike Wash Centre
A wash station for bikes that is friendly to the environment will employ biodegradable cleaning agents, systems with low water pressure, and microfiber detailing. This can be set up outside of cycling clubs, parks, or even gated communities and as pop-ups at weekend cycling meetups. You are able to offer tiered packages, including basic wash, deep cleaning of the drivetrain, lubrication, ceramic waxing, and rust protection.
Investment: ₹1.5 lakhs to ₹16 lakhs for space, cleaning station setup, eco-clean products, and marketing.
Market: amateur cyclists, road cyclists, MTB riders, cycling clubs, delivery fleets
Profit Margin: 35–65% with high retention from repeat local riders
Online Bike Maintenance Workshops
With cycling communities on the rise, video-based guidance and live Zoom-based training can be a reliable revenue stream, as riders would want to self-service simple fixes. You can offer structured courses: basic care, tuning gears, brake alignment, drivetrain cleaning, and upgrade planning. Other pieces of content you might provide are downloadable tool guides, maintenance checklists, and even certification badges for more advanced learners.
Investment: ₹50,000 to ₹6 lakhs for recording equipment, course platform, promotion. Studio rental optional.
Market: New cyclists, DIY enthusiasts, student riders, cycling clubs, MTB hobbyists, urban commuters
Profit Margin: 60–90% because knowledge-based digital products have low delivery costs.
E-Bike Cargo for Last-Mile Delivery
The e-bike cargo rental model targets small businesses, cloud kitchen aggregators, grocery delivery partners, and neighborhood merchants for short-distance logistics. With increasing fuel costs and demand for environment-friendly models of delivery, the e-cargo bikes can replace scooters for delivery areas under 3-6 km radius. The units usually have heavy-duty front or rear cargo racks and longer battery capacity.
Investment: ₹9 lakhs to ₹1.8 crores (fleet acquisition, batteries, chargers, fleet tracking system)
Market: Kirana stores, small restaurants, cloud kitchens, courier services, D2C startups, hyperlocal grocery delivery.
Profit Margin: 35–55%, depending on the battery replacement cycles and fleet utilisation rate
SWOT Summary
Strengths
Growing urban interest in eco-friendly transport and fitness boosts demand for bicycles and e-bikes. Low production cost makes small plants profitable.
Weaknesses
Seasonal sales patterns, limited high-quality component suppliers in India, and initial setup costs (₹5–₹10 lakh) can challenge new entrepreneurs.
Opportunities
Rising e-bike trend, government incentives for EV and Make in India policies, and demand for delivery bikes create strong growth potential.
Threats
Imported brands and cheap Chinese e-bikes can affect local margins. Market fluctuations in steel and lithium battery prices also impact costs.
*Hover over each box to view insights in an interactive format.
Bottom Line
Every successful bicycle business starts with a very simple observation: people will always have a need to get around efficiently, inexpensively, and healthily. With a practical plan, secure supplier and customer relationships, and flexibility in expanding the business, the most important thing is to choose a model that fits your skills, location, and available resources.
Disclaimer: The information contained in this blog, The Growth File, is intended for general informational purposes only and does not constitute professional advice. Always consult with a qualified professional before making any business decisions based on the information you find on this blog.