Domestic two wheeler makers up in arms over ABS implementation

As the government mandates the implementation of the anti-lock braking system (ABS) beginning January 1, 2026, two-wheeler manufacturers are on the edge, especially those catering to the entry-level segment, i.e. below 125 cc.

At present, only two-wheelers above 125 cc engine capacity have ABS. However, amidst the rising incidents of road accidents, the Ministry of Road Transport and Highways has mandated all two-wheelers to have ABS. India recorded approximately 53,000 road accidents involving two-wheeler in 2023, per government data. 

ABS helps ensure a motorcycle’s wheels don’t lock up during emergency braking. By keeping the wheels rolling, ABS preserves traction and steering control, enabling riders to manoeuvre around obstacles and reduce the risk of crashes.

Notably, while ABS ensures safety, for the entry-level and commuter segment, where the margins are razor-thin, the production cost will increase by Rs 4,500 to Rs 5,000, as per ICRA. 

Only 23% of over 12.25 million motorcycles sold in the country in FY25—primarily premium bikes—were equipped with ABS, says ICRA. The below 125 cc segment accounts for 76% of the total two-wheeler sales in FY25. 

Tsutsumu Otani, Managing Director, President & CEO, Honda Motorcycle & Scooter India, told Business Today in an interview that SIAM (Society of Indian Automobile Manufacturers) is currently negotiating with the government for the implementation of ABS. 

Otani, however, points out that with the implementation of ABS, the cost of production will increase, and that will ultimately increase the cost of the product. “On the other hand, the ABS unit capacity is also vivid. So, simply, if we calculate the market size as 20 million, it is under capacity. But if the government mandates ABS, we will implement it,” says Otani. 

As per a report by Nomura, 85% of the two-wheelers will be impacted by ABS, with Hero MotoCorp facing a significant impact. 

Notably, in its latest annual report, Hero MotoCorp said that the constantly evolving regulations require continuous adaptation, leading to increased compliance costs. “Frequent regulatory changes may cause operational disruptions and require process realignment,” the company adds.