The Ministry of Road Transport and Highways has proposed draft amendments to the Central Motor Vehicle Rules, 1989, mandating that all two-wheelers manufactured on or after January 1, 2026, be equipped with anti-lock braking systems (ABS). Additionally, manufacturers will be required to provide two protective helmets with every two-wheeler sold, starting three months from the amendment’s implementation date.
While two-wheelers with engines of 125cc and above already feature ABS, the move will significantly impact the entry-level segment. As per ICRA estimates, around 77% of current two-wheeler sales—primarily sub-125cc models using Combined Braking Systems (CBS)—will be affected by the new regulation.
According to ICRA, the mandatory ABS implementation is expected to raise prices of entry-level two-wheelers by 3–5%, translating to an increase of ₹2,500–₹4,000 per vehicle. This price hike could put additional pressure on a segment still struggling to return to pre-pandemic demand levels.
The regulation aims to tackle India’s alarming road fatality rates, especially among two-wheeler riders. Government data shows that two-wheeler accidents account for 41% of all deaths on national highways—the highest among all vehicle categories. Notably, the fatality rate has continued to rise over the past decade, even as the overall number of accidents has remained largely unchanged.
ABS offers a major safety upgrade over CBS by preventing wheel lock and maintaining steering control, especially on slippery roads. Meanwhile, India’s two-wheeler industry has struggled since FY2019, with sales dropping 35% from peak levels due to factors like stricter regulations, BS-VI emission norms, rising insurance costs, and inflation, which have collectively raised vehicle prices by 45–50%.
Rising vehicle prices outpacing household incomes—especially post-Covid—have widened the affordability gap, hitting entry-level two-wheeler buyers the hardest. Though industry volumes have rebounded to 19.7 million units in FY2025, they remain below peak levels, with entry-level motorcycles dropping from 62% of sales in FY2019 to 46% in FY2025.
The new ABS mandate, part of India’s expanding safety regulations, adds further cost pressure and may slow recovery in the entry-level segment, which now operates at just 67% of its FY2019 volume. While aligning with global norms, India’s broader ABS requirement across all engine sizes may strain affordability and delay market growth in the short term, despite long-term safety benefits.
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