Honda bikes might become costlier in India from January
What's the story
Honda Motorcycles has expressed concerns over the proposed implementation of Anti-lock Braking System (ABS) for all two-wheelers in India from January. The company's Director of Sales and Marketing, Yogesh Mathur, said that the move could lead to a spike in imports as local suppliers are not yet ready to meet the demand.
Industry apprehension
What did the company say?
Honda's warning mirrors the concerns raised by Hero MotoCorp in its latest annual report. The company had flagged ABS implementation as a "key business risk," without directly mentioning the system. Mathur emphasized that while cost is an impact, the bigger question is whether we are really prepared from a supply-side perspective.
Safety measures
Current vs proposed scenario
ABS is a crucial safety feature that improves traction and prevents skidding on roads, thereby reducing accidents. Currently, only two-wheelers with an engine capacity of more than 125cc are mandated to have ABS. However, if the draft proposal is implemented, it would cover 84% of the two-wheeler market segment, increasing costs by ₹3,000-5,000 per unit.
Deadline extension
SIAM met Roads Ministry for deadline extension
On July 9, representatives from the Society of Indian Automobile Manufacturers (SIAM) met with the Union Roads Ministry Secretary to seek an extension for the ABS rollout deadline. However, the Secretary stressed on urgent safety measures given the high number of two-wheeler fatalities and emphasized technical interventions.
Market growth
Domestic ABS industry expected to grow rapidly
Analysts expect rapid growth in the domestic ABS industry due to such regulations. Rishi Vora, an analyst at Kotak Institutional Equities, predicted that the industry size could increase five-fold with the shift toward ABS. Currently, Bosch dominates the 2W ABS market with a 60-70% share, followed by Continental and Endurance Technologies with 10-15% each.