Government To Meet Industry On ABS Mandate As Cost Concerns Rise | Profit Exclusive
Analysts estimate that equipping sub-125 cc motorcycles with ABS could raise prices by 5% to 10%.
The government is likely to convene a meeting with key industry stakeholders to discuss the upcoming mandate requiring all two-wheelers below 125 cc to be equipped with advanced braking systems (ABS), sources told NDTV Profit.
The Ministry of Road Transport and Highways had notified the new rule in July, with implementation set to begin on Jan. 1, 2026.
However, the two-wheeler segment, has raised concerns about the higher costs associated with shifting to ABS.
Manufacturers argue that the current combined braking system (CBS), widely used in entry-level bikes, is already effective for this segment. They believe the compulsory move to ABS could significantly increase prices in a cost-sensitive category.
The industry’s stance aligns with earlier recommendations from SIAM, which suggested an advanced and improved version of CBS for lower engine-capacity motorcycles as an alternative to full ABS.
Analysts estimate that equipping sub-125 cc motorcycles with ABS could raise prices by 5% to 10%. Such an increase may impact demand in the entry-level segment, which has only recently begun recovering after several years of slowdown.
(This is a developing story.)
