

India’s Budget Bikes to Get Safer—but Also Costlier—Under New ABS Rule
- Jul 22 ,2025
- by admin
- Goldmine Update
Beginning January 1, 2026, all new two-wheelers sold in India—regardless of engine displacement—will be required to be equipped with Anti-lock Braking Systems (ABS), as announced by the Ministry of Road Transport and Highways (MoRTH). This marks a significant expansion of current safety regulations, which mandate ABS only for vehicles with engine capacities above 125cc. The move is part of a broader governmental initiative aimed at reducing road traffic injuries and fatalities, particularly among vulnerable road users.
ABS is a crucial safety feature that prevents wheel lock-up during sudden or forceful braking, allowing the rider to retain steering control and reducing the likelihood of skidding and accidents. The policy shift is significant, considering that, according to data from the Society of Indian Automobile Manufacturers (SIAM), 1,96,07,332 two-wheelers were sold in India in FY25, with 1,53,10,587 units (78.09%) having engines of 125cc or less. These vehicles, which currently are not required to have ABS, form the backbone of India’s two-wheeler market.
The decision is backed by alarming statistics. MoRTH data from 2022 revealed that two-wheeler riders accounted for the largest share (44.5%) of road accident fatalities. Of the 1,68,491 deaths recorded in road accidents that year, 74,897 involved two-wheeler users. The expanded ABS mandate is expected to play a critical role in reducing this disproportionately high casualty rate.
In parallel with the ABS mandate, the government has also announced that two BIS-certified helmets—one for the rider and one for the pillion—must be provided with every new two-wheeler sold. Currently, only one helmet is required. This step further emphasizes the government’s commitment to enhancing road safety for both riders and passengers.
While the regulatory changes are seen as a positive step toward safer roads, they are expected to increase vehicle prices. Industry estimates suggest that the cost of equipping ABS could range from ₹3,500 to ₹6,000 per unit, depending on the model and whether the vehicle is powered by an internal combustion engine (ICE) or is electric. This cost increase is likely to have a greater impact on lower-end models, which dominate the sub-125cc category, as the ABS kit cost is relatively fixed across segments.
The financial impact is expected to be most significant for Hero MotoCorp, which derives 99% of its domestic sales from the sub-125cc segment. Other manufacturers will also face pressure, with Honda Motorcycle & Scooter India (HMSI) having 89% of its volumes in this category, followed by TVS Motor Company at 86%, and Bajaj Auto at 72%.
As India pushes forward with safety-led regulations in its automotive sector, the success of this mandate will depend not just on enforcement, but also on consumer awareness and industry preparedness to absorb the added costs without compromising on accessibility and affordability for the country’s massive two-wheeler market.





