Brompton CEO warns chancellor removing tariffs on Chinese bikes could "kill" folding bicycle brand

Brompton may not survive if the chancellor opts to remove tariffs on Chinese bikes, the folding bicycle brand's CEO has warned.

The comments come days on from Brompton's latest accounts revealing that the iconic British manufacturer saw profits nosedive in 2024, falling by over 99 per cent amid warnings that "the bike industry will not get better this year".

Will Butler-Adams, Brompton's CEO, told the Financial Times of his concern at reports chancellor Rachel Reeves is considering scrapping tariffs on Chinese bikes as part of a review of tariffs inherited from the EU post-Brexit — including those for Chinese bicycles and parts.

Reeves is currently in China, Butler-Adams' comments coming ahead of the under-pressure Labour chancellor's visit to Brompton's flagship Beijing store.

The folding bicycle brand's CEO suggested removing the tariffs could "kill" Brompton, the Department for Business insisting that "no decision" has yet been made.

"I don't need the government to back me [with specific support for the bike industry]. I just don't need them to kill me, you know?" Butler-Adams told the Financial Times. "Since the pandemic, we’ve seen the cost of a bike drop 40 per cent because the market [has a surplus of stock]. People are going bust. If you're selling a bike at a discount, you're making a loss, so you're not sustaining the industry.

"We know that in the rest of Europe, these tariffs are remaining... That's all we’re asking for here — a level playing field."

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If tariffs are removed, the Brompton chief predicted the UK market would be flooded with "sophisticated, well-organised and well-resourced" Chinese competitors offering cheaper models and that it may lead to job losses. The Financial Times noted his admission that China is the company's biggest market, a fact assisted by the lack of tariffs China has on UK imports.

He also made a safety argument. In April, the Brompton boss urged a crackdown on "poor quality" e-bike batteries before public perception "snowballs into a world of fear" — an issue he now blamed on "low quality, unregulated bikes that are being imported illegally from China or Vietnam".

"Bikes are not toys. If they break, they could kill somebody; it's no joke," he continued. "If we had a sophisticated audit system [safety concerns would be unfounded]... But the guy at the port hasn’t got a clue. He doesn't know anything about bike standards"

Responding to the claims, the Department for Business and Trade said: "No decision has yet been made on these specific tariffs — but the independent TRA are there to ensure our tariffs work for our economy."

Brompton has been in the news plenty this year, the sobering accounts for 2024 showing that the company had seen profits plunge by over 99 per cent during a "challenging" last year.

Profits had jumped by 35 per cent in 2023,  but the latest accounts cited increased operational costs, an over-dependency on China, and heavy discounting by rivals as key factors behind its recent nosedive in profits.

Overall turnover fell by 5.3 per cent compared to the previous year (from £129.4m to £122.6m) as the total number of bikes sold (84,899) dropped by 8.2 per cent, from 91,785, a consequence Brompton says of the "wider global economic uncertainty and challenges in the cycling industry".

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This has resulted in a pre-tax profit of just £4,602 for the year – the equivalent of one of the brand's top-of-the-range T Line models – down from £10,680,953 the previous year.

Responding to these figures, Butler-Adams said the fall in profits was due to selling fewer bikes than expected amid a "really sad state of affairs" for the global bike industry as it struggles to adapt in the wake of the post-pandemic boom.

In more positive news, last week the company's new £100m "car-free" factory in Kent was given the green light. The project has already been delayed for two years but is set to be approved by councillors at Ashford Borough Council.

The week ended with one of the more bizarre cycling industry supply chain stories of recent years, Butler-Adams revealing that the launch of the new G Line range last autumn was delayed by two months – because the supplier tasked with manufacturing controllers for the electric bike was too busy building drone parts for the UK's Ministry of Defence, suspected to be used as part of the ongoing war in Ukraine.