The proposed mandating of anti-lock braking systems (ABS) for all two-wheelers could push up motorcycle and scooter prices and potentially weigh on demand, but the two-wheeler industry has had a constructive and ongoing dialogue with the government to balance safety objectives with affordability, Bajaj Auto said.
Speaking to the media after the Q3 FY2026 earnings, Rakesh Sharma, executive director at Bajaj Auto, said cost increases driven by regulatory changes have historically affected demand, particularly in price-sensitive segments of the motorcycle market.
A draft notification published by the government in the second half of last year said that “vehicles of category L2 [two-wheelers] manufactured on and after January 1, 2026, in case of all models, shall be fitted with Anti-lock Braking Systems conforming to IS 14664:2010”. However, there has been no official update on the start of implementation.