The Indian government has reiterated its stance on implementing mandatory anti-lock braking systems (ABS) on two-wheelers with engine capacity below 125cc, refusing to extend the January 1, 2026 deadline. Despite requests from manufacturers, the Ministry of Road Transport and Highways (MoRTH) has emphasized that safety regulations cannot be compromised for cost reasons. The ministry has argued that the cost impact of adding ABS is manageable and that companies should adjust their product pricing accordingly.
Manufacturers, including Hero MotoCorp and Honda Motorcycle and Scooter India (HMSI), have warned that installing ABS could increase vehicle prices by around Rs 5,000-6,000, potentially dampening demand in rural markets where most entry-level motorcycles are sold. However, the ministry has pointed out that the recent reduction in GST rates on two-wheelers up to 350cc engine capacity from 28% to 18% has already brought down prices.
The manufacturers have cited global precedents, such as Japan, where ABS is mandatory only for motorcycles above 125cc, and smaller models are allowed to use combined braking systems (CBS). They argue that CBS provides adequate safety for commuters who mostly use these bikes for short-distance travel in cities and rural areas. However, the ministry remains unconvinced, emphasizing the importance of rider safety.
The mandate is expected to disproportionately affect the mass segment, which accounts for nearly 85% of motorcycle sales in India. Hero MotoCorp, which derives most of its volumes from this segment, is likely to be the most affected, followed by Honda, TVS Motor Company, and Bajaj Auto. Industry executives have warned that the increased cost of ABS could lead to a decline in sales, particularly in rural areas where customers are highly price-sensitive. Nevertheless, the government remains committed to implementing the safety regulation, prioritizing rider safety over cost considerations.