The government is planning to make anti-lock braking systems mandatory for all two-wheelers sold in the country starting January 1, 2026. This has been taken into account after a staggering increase in road accidents.
Currently, ABS is mandated for all two-wheeler vehicles having an engine capacity of above 125 CC. But from next year, the government is planning to impose ABS systems on all two-wheelers regardless of the engine capacity.
According to Government data, a staggering 74,897 casualties were reported in 2022 through two-wheelers, which amounted to 44.5 percent of total road accidents related fatalities alone.
As of 2022, India has over 26.4 crore registered two-wheelers and almost 45 percent of these vehicles lack ABS technology which makes it a wide gap, raising road safety concerns.
Stocks that might benefit from this move
Endurance Technologies is the largest publicly listed beneficiary because it is directly manufacturing ABS for two-wheelers with BWI Group, and with a strong tie with OEMs and significant potential for volume ramp-up, its new mandate will provide a significant revenue lift. The stock surged by 6.21 percent on Friday.
UNO Minda Ltd, while not a full-fledged ABS manufacturer, is involved in braking systems and supplies key components that are integrated in ABS applications as systems. Thus, growing demand for ABS-compliant braking systems may potentially result in indirect opportunities for revenue lift. The stock surged by 2.14 percent on Friday.
Rane Holdings Ltd, through its subsidiaries Rane Brake Lining and Rane Brake Systems, supplies parts associated with braking systems. Though it is not manufacturing ABS, it may still accrue ancillary benefits from increased demand for brake components in related systems. The stock surged by 1 percent on Friday.
Written by Satyajeet Mukherjee
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