Honda says ABS rollout from Jan for two-wheelers to drive up imports

Mint

12 hours ago

Honda Motorcycles and Scooter India Pvt. Ltd has joined larger peer Honda MotoCorp Ltd in flagging concerns about the January rollout of anti-lock braking system in all two-wheelers, saying it could spike imports as local suppliers are not yet ready to meet the demand.
'Cost is definitely there as an impact. But more important is in terms of whether we are really prepared from the supply side point of view," Yogesh Mathur, director of sales and marketing at Honda Motorcycles and Scooter India (HMSI), told Mint. Suppliers will have to rely on import routes due to the strict timelines and domestic manufacturing will have to prepare accordingly, he said.
The country's second-largest two-wheeler maker's warning reflects the anxiety flagged by its former partner, Hero, about the 'key business risk" in its latest annual report, without directly referring to the anti-lock braking system (ABS) implementation from 1 January. The system improves traction and helps avoid skidding on roads, which helps prevent accidents.
Currently, only two-wheelers with an engine capacity of more than 125cc are required to have ABS. At the end of the financial year 2025, only 16% of the total 19.6 million two-wheelers sold had the required technology. If the draft proposal is implemented, 84% of the two-wheeler market will have to install ABS, increasing the cost by ₹3,000-5,000 per unit.
Representatives of the Society of Indian Automobile Manufacturers (Siam), an industry lobby, met on 9 July with the Union roads ministry secretary to seek a relaxation on the rollout deadline.
The minutes of the 9 July meeting, accessed by Mint, showed the Siam delegation asked for more time to study India-specific accident data before implementing such regulations.
'[But] the Secretary MoRTH stressed the urgent need for implementing safety measures, citing the high percentage of 2-wheeler fatalities, and emphasised technical interventions."
HMSI's Mathur told Mint, 'If these deadlines prevail, definitely, I think it will be only through the import route, not from the domestic side unless the investments are being done by the supplier to increase their production."
Analysts predict that the domestic ABS industry will see rapid growth due to the implementation of such regulations. 'With the shift toward ABS, we expect the industry size to increase by 5X to ₹80.4 bn," Rishi Vora, an analyst at Kotak Institutional Equities, wrote in a 20 June note.
'Currently, the 2W ABS market is dominated by Bosch—unlisted arm (60-70% market share), Continental andEndurance Technologies (10-15% market share)."
Other analysts flagged reliance on imports for critical ABS components.About 65–70% of critical ABS components, particularly electronic control units and wheel speed sensors, are imported, with China and select Asean nations forming a major part of the sourcing base, said Harshvardhan Sharma, group head for auto tech and innovation at Nomura Research Institute Consulting and Solutions India.'While domestic suppliers are actively expanding capacity, a full localization transition may require at least a 12–18 month runway, factoring in validation cycles, tooling, and volume commitments," Sharma said.
Subhabrata Sengupta, partner at Avalon Consulting, suggests that with the deadline approaching soon, more players will look to enter the segment and expand their capacities.
'...The ECU and sensor may be imported initially, but assembly may be indigenized quickly," Sengupta said. 'However, in our view, this is a deadline to light a fire. In all probability, this may get relaxed by say 6 months, making implementation smoother."