Two-Wheeler ABS Mandate: Industry Titans Bajaj, Hero, TVS In Last-Ditch Plea To Govt! Price Hikes Looms?

The Indian government plans to make Anti-lock Braking Systems (ABS) mandatory for all two-wheelers from January 1, 2026, aiming to reduce road accidents by preventing skidding. Currently, ABS is only required for models above 125cc, while smaller vehicles use a simpler Combined Braking System (CBS). In the fiscal year 2025, only about 16% of the 19 million two-wheelers sold were equipped with ABS. Major manufacturers like Bajaj Auto, Hero MotoCorp, and TVS Motor Company, along with the Society of Indian Automobile Manufacturers (SIAM), are seeking a phased implementation. They argue that scaling up supply capacity to meet the demand for ABS across most of their product lines is challenging. This transition is expected to increase vehicle prices by an estimated ₹3,000 to ₹6,000 per unit. SIAM has also proposed an advanced CBS as an alternative that could enhance safety without a significant cost hike. Industry representatives are set to meet Road Transport Minister Nitin Gadkari on November 11 to discuss these issues, hoping for some relaxation in the timelines. Suppliers of ABS components, such as Bosch, Continental, and Endurance Technologies, predominantly rely on imports for critical parts like ECUs and sensors from countries like China and other ASEAN nations, indicating potential supply chain strains. Analysts suggest a 12-18 month phased rollout would allow manufacturers to build capacity and potentially achieve higher localization. Impact This news has a direct impact on the Indian automotive sector, particularly the two-wheeler segment. Manufacturers face increased production costs and the need for significant investment in supply chain and manufacturing capabilities for ABS. This could lead to higher retail prices for consumers, potentially affecting demand for entry-level models. For investors, this presents challenges and opportunities related to component suppliers and manufacturers' ability to adapt. Rating: 8/10