Hero MotoCorp Leads Declines In Two-Wheeler Stocks After Mandatory ABS Proposal

Shares of major two-wheeler manufacturers, including Hero MotoCorp Ltd., TVS Motor Ltd., and Bajaj Auto Ltd., declined following the Transport Ministry's proposal to mandate anti-lock braking systems on all two-wheelers starting January 1, 2026, as per reports.

Hero MotoCorp saw the most significant drop, falling by 4.09% to Rs 4,204.9. Bajaj Auto's share price decreased by 2.9% to Rs 8,250, while TVS Motor declined by 0.86% to Rs 2,756.1.

Eicher Motor, the parent company of Royal Enfield, was the only stock marginally in the green as all their bikes are equiupped with ABS.

The Transport Ministry's new safety regulation will require all two-wheelers sold in India to be equipped with anti-lock braking system or ABS from January 1, 2026.

Currently, only two-wheelers above 125-cc are mandated to have ABS, but motorcycles up to 125cc still make up approximately 76% of the market. This change is expected to significantly impact the two-wheeler industry, particularly affecting manufacturers of entry-level bikes.

Hero MotoCorp, the largest producer of low-cost bikes without ABS, saw the most substantial decline. The proposed regulation is anticipated to increase production costs, which manufacturers are likely to pass on to consumers.

The Ministry is also considering making it mandatory to purchase two BIS-certified helmets at the time of sale. These moves are aimed to enhance rider safety but could further increase the overall cost of purchasing a two-wheeler.

While the safety benefits of ABS are widely recognised, the new mandate is expected to pose challenges for manufacturers. The additional cost of implementing ABS could lead to higher prices for consumers, affecting sales volumes.