Upcoming ABS Regulation Presents Challenges and Opportunities in Two-Wheeler Market

A new rule is on the horizon for India’s two-wheeler market: from January 2026, all bikes and scooters under 125cc will need to have anti-lock braking systems (ABS). This move is aimed at making roads safer, but it’s also set to shake up the industry, especially for the biggest players.

 

Here’s what’s happening:

While manufacturers might feel the pinch, ABS suppliers like Endurance Technologies are in a good spot. With so many more vehicles needing ABS, their business could grow five times over.

 

There are also some supply chain worries, like shortages of rare earth magnets, which could complicate things further for the industry.

Even though the rule is good news for road safety, don’t be surprised if manufacturers push for a slower rollout to soften the blow to their margins.

 

Source: Economic Times, NDTV Profit, Business Standard