TI Cycles is one of the two largest cycle manufacturing units in the country as of 1972. The Case poses the problem of formulating a strategy for TI Cycles in the face of severe competition, sluggish demand, escalating costs, and governmental pressures to hold the prices. The companys response is to differentiate its products by quality as well as price, and it has plans to set up an assembly plant for cheaper cycles closer to its North Indian market using components supplied from Madras. Data provided include a note on the Indian cycle industry, information on the TI group, and pullouts from its advertising campaign. Issues raised include the responses to the governments price policy and evaluation of the strategic options open to the company.