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 anti-lock 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. The ministry, in a notification, said that at the time of purchase of a two-wheeler, the manufacturer will supply two protective headgear, conforming to specifications prescribed by the Bureau of Indian Standards.
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.
The anti-lock braking system is designed to prevent wheel lock-up during sudden braking, reducing the likelihood of skidding and crashing.
According to the government's latest data, two-wheelers were involved in nearly 20% of India's 1,51,997 road accidents in 2022.
