Archive · 19 Jan 2026
Two-Wheeler Industry Faces ABS Mandate Challenge
The two-wheeler industry in India is expected to grow by 6-9% in 2026.
However, a new rule that might make anti-lock braking systems (ABS) mandatory for smaller bikes and scooters could increase prices by up to 7%.
This is because adding ABS costs around ₹2,000-5,000 per vehicle.
Many people buy these smaller vehicles because they are affordable, so higher prices could reduce sales.
The industry is also dealing with uncertainty about when this rule will be implemented.
Despite these challenges, the industry is optimistic due to strong rural demand and the recent reduction in GST, which has made vehicles more affordable.
Electric two-wheelers are also becoming more popular, adding to the growth.
India's two-wheeler industry expected to grow 6-9% in 2026.
Proposed ABS mandate for sub-125cc models could increase prices by up to 7%.
Cost of adding ABS estimated at ₹2,000-5,000 per vehicle.
Sub-125cc models account for 74-75% of motorcycle sales.
Industry optimistic due to resilient rural demand and GST reduction.
- Who
- India's two-wheeler industry
- What
- Potential impact of ABS mandate on growth and prices
- When
- 2026
- Where
- India
- Why
- Proposed ABS mandate for sub-125cc models
- Growth Rate
- 6-9% in 2026
- GST Reduction
- From 28% to 18%
- ABS Cost
- ₹2,000-5,000 per vehicle
- Price Increase
- Up to 7% in entry-level models
- Sub-125cc Sales
- 74-75% of total motorcycle sales
- Monthly Sales
- Around 900,000 units
- Rural Market Share
- 55-60% of volumes
- Electric Vehicle Penetration
- Expected to reach 7.5%
