Are safety regulations hurting India's two-wheeler industry? Manufacturers push back on ABS mandate

Time of India

a day ago

Two-wheeler manufacturers
are likely to approach the government to seek a deferral of the proposed safety regulation mandating
anti-lock braking systems
(ABS) across all two-wheeler models from January 1, 2026, citing implementation challenges and capacity constraints.
On June 27, the Ministry of Road Transport and Highways (MoRTH) had issued draft amendments to the Central Motor Vehicle Rules, 1989, proposing mandatory fitment of ABS in all two-wheelers manufactured on or after the specified date.
To meet this mandate, the Industry will need to scale up ABS production by over six times from the current levels within a short time frame, which is not feasible, stakeholders said.
None of the manufacturers currently have the installed capacity to meet this level of demand, a senior executive at a leading multinational component supplier told ET on the condition of anonymity.
The regulation would also require homologation of models, which certifying agencies like Automotive Research Association of India (ARAI) may not be equipped to handle at such scale within six months, the executive said.
According to a recent ICRA report, only 23% of over 12.25 million motorcycles sold in the country in FY25-primarily premium bikes-were equipped with ABS. The remaining 77% under-125cc motorcycles, numbering about 9.43 million, were fitted with combi-brake systems (CBS), it said.
Rakesh Sharma, executive director at Bajaj Auto, said Indian two-wheelers already offer safety technologies comparable to advanced markets and include features designed for local usage. "Once outcome standards are mandated, the choice of technologies to meet them should be left to OEMs and customers," he said.
Another senior industry executive argued that for the entry-level segment, CBS may be more effective than ABS, as most riders tend to use the rear brake. "We will need to meet and present all viewpoints to the government, including effectiveness and accident data," the person said.
A senior government official, however, told ET that the MoRTH believes a six-month lead time from final notification is sufficient. However, the actual window may extend to eight to ten months, given the time needed to finalise the notification, the person noted.
The ministry maintains that 80% of two-wheeler accidents involve vehicles under 125cc, underlining the need for ABS in this segment.
The official confirmed that the ministry has held consultations with industry stakeholders.
The proposed amendments to motor vehicle rules also mandate that two protective headgears be supplied with the sale of every two-wheeler, effective three months from the date of final notification.
Industry players have also questioned the cost-benefit of ABS in low-powered motorcycles.
According to ICRA, implementing ABS is likely to increase vehicle prices by '4,500-5,000, translating to about 4-10% price hike for entry-level motorcycles.
OEMs are expected to pass on the additional cost to consumers. This could further delay recovery in the price-sensitive entry-level segment, which is still below its FY19 peak due to successive regulatory cost increases over the past few years-including BS-VI norms, insurance changes, and fuel price hikes.