Kiruba goes to office daily on his bicycle. Among other reasons he mentions the increasing prices of fuel as one. Read his interesting post here.
By this logic....the prices of Bicycles are bound to increase, for the demand would definitely explode and increasing exponentially and the current capacity which hasn't taken the fuel price in consideration would fall short. Companies establishing their base in India will have to procure licences and Quotas shall be provided for each company for the manufacture of bicycles. All this in the name to prevent the nascent Indian Bicycle industry from the onslaught of the American, Japanese, Chinese and Korean companies.
Gradually the markets would be opened up with restricted FDIs and slowly moving towards a competitive market resulting in a slight decrease in prices (what the stock marketers say to be price correction).
Furthermore the government would find out someway to tax this rapidly increasing industry. Andhra Pradesh government would levy road tax on bicycle up to 50%. Licenses would be issued to cycle owners. New traffic and challan rules for the bicycle ‘drivers’, pillion riders and ‘rod’ riders (those who sit in the front, on the rod) would be determined (Yaar, Government has to think for the police also!!!).
Then being a natural unreplenishable product steel and iron will get short in supply and the input cost for a bicycle would increase. There would be another ‘tire for iron/steel’ scandal. And Tatas would lead again from the front by making a Rs. 1 lakh bicycle.
Some time later the uncontrollable hike in prices would make people walk to their offices and then another vicious cycle would start.
He he he…….
Written on a lighter note…….
Manish
P.S.: I am definitely going to buy one bicycle with my each months pay (investment) for the current prices are very low. Will also design a new financial instrument - "Bicycle Futures".
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