India’s bustling two-wheeler market—among the largest in the world—is at the center of a heated debate. A draft government proposal aims to make anti-lock braking systems (ABS) mandatory for all two-wheelers starting 1 January. What should have been a straightforward safety upgrade has turned into a tug-of-war between suppliers who insist they’re ready, and automakers who warn that the industry simply can’t meet demand in time.

As new statements from industry giants Bosch Ltd. and Endurance Technologies emerge, the landscape has shifted dramatically. This narrative explores both sides of the story—what’s driving the optimism, why some are hitting the brakes, and how the nation’s mobility future hangs in the balance.

Why ABS Matters—and Why the Government Is Pushing Hard

Anti-lock braking systems prevent wheels from locking during sudden braking, reducing the risk of skidding—a critical feature on India’s unpredictable roads. Currently, only bikes above 125cc (just 16% of FY25’s 19 million sales) are required to use ABS. The draft mandate would extend this requirement to all two-wheelers, including entry-level bikes and scooters.

For policymakers, it’s a simple equation: more ABS = safer roads.

But for manufacturers, the story is more complex.

The Suppliers’ Confidence: “We Can Deliver”

Bosch India: Ready for Liftoff

Bosch and its sister unit Bosch Chassis Systems India already manufacture a significant share of India’s ABS units. According to Guruprasad Mudlapur, Bosch India’s MD & CTO, the company is “very well prepared” to handle the surge in demand.

During a recent earnings call, he doubled down on this readiness:

“If the mandate gets implemented as in the draft, we are very well prepared to handle that.”

Endurance Technologies: Scaling 5x

Endurance, another leader in ABS production with deep roots in the two-wheeler ecosystem, is going even further.

Managing Director Anurang Jain revealed plans to:

• Boost production capacity from 640,000 to 1.84 million units, with potential expansion to 2.4 million depending on final government guidelines.
• Rapidly secure components across all production lines.
• Strengthen backward integration across ECU boards, valves, and steel-bred hoses.

Their message to the Government? Go ahead—we’ve got this.

Market Share Advantage

Together, Bosch and Endurance control 60–70% of the ABS supply market in India. Their readiness doesn’t just reassure buyers; it signals stability for the ecosystem.

The Automakers’ Apprehension: “We Need More Time”

While ABS makers are optimistic, India’s largest two-wheeler companies are waving red flags.

Major players—Bajaj Auto, Honda Motorcycle & Scooter India (HMSI), TVS Motor Co., and Hero MotoCorp—are urging the government to delay the mandate.

Their concerns break down into two pillars:

1. Cost Shock for Consumers

Entry-level bikes and scooters drive mass-market sales. Adding ABS could raise prices by ₹3,000–₹6,000. Manufacturers fear this could hit the most price-sensitive segment hard, slowing demand—especially in rural markets.

2. Supply Chain Uncertainty

Executives argue that current supplier capacities can’t meet demand if ABS becomes mandatory all at once.

Rakesh Sharma of Bajaj Auto noted:

“It will be difficult to manage the capacity because that doesn’t obviously exist… there will have to be phase-wise execution.”

Honda’s leadership echoed the sentiment, warning that dependence on imports could rise sharply without more prep time.

On 11 November, automaker representatives met with Union Minister Nitin Gadkari to push for a phased rollout, emphasizing the risk of supply shortages.

The Missing Middle: Why the Industry Is Divided

The divide stems from the asymmetry between supplier readiness and OEM caution:

• Suppliers argue they have the technology, scale, and flexibility to fast-track capacity expansion.
• Automakers worry about production bottlenecks, cost escalation, and logistics challenges—especially for low-margin models.

Industry watchers like EY’s Som Kapoor weigh in to say technology isn’t the limiting factor:

“There is no technology gap… scaling supplies should not be a major challenge.”

The implication? Automakers may be more concerned about pricing and demand elasticity than supply capability.

What Happens Next?

With stakeholders split, all eyes are now on the government’s final decision. Will it enforce the mandate as proposed? Or opt for the phased approach manufacturers want?

The next few weeks are crucial. Endurance’s pending decision to order a second production line—and suppliers’ broader investment timelines—hinge directly on clarity from policymakers.

Conclusion: A Crossroads for Safety and Affordability

The push for universal ABS represents a step forward for road safety in India, potentially saving thousands of lives. But the path to implementation is fraught with competing priorities:

• Suppliers see an opportunity to scale and serve.
• Automakers fear consumer pushback and supply disruption.
• The government must balance enhanced safety with economic realities.

As the ABS debate intensifies, one thing is clear: India’s two-wheeler industry is standing at a pivotal turning point—one that could reshape the market for years to come.

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