This transition could mean a cost increase of ₹3,000–₹5,000 per unit for two-wheeler manufacturers. Hero MotoCorp is expected to be the most impacted, with 94% of its models needing upgrades. For TVS Motor, the impact is estimated at 64–65% of its portfolio, and for Bajaj Auto, about 35%. Royal Enfield, which already offers ABS on all its models, will not be affected.
Vora highlighted that the ABS component market will likely expand nearly fivefold as a result of the regulation.Currently, Bosch, Continental, and Endurance Technologies are the main players in the ABS supply market. Bosch leads with over 60% market share, though its ABS business sits in its unlisted arm. Endurance has about 10–15% share. Vora cautioned that “supply can be a constraint” in the near term and said companies with faster capacity expansion will benefit the most.
Also Read | New launches, lower rates may drive auto recovery in FY26 second half: BofA
On the demand front, Vora noted that two-wheeler sales growth has been modest, adding that growth slowed after the festive season last year. While May saw some improvement due to the wedding season, sales softened again in June. He expects full-year growth of around 6%, slightly below industry guidance of 6–8%.For passenger vehicles, he said first-quarter retail sales showed a low single-digit decline, and full-year growth is expected to remain subdued. “We are around 3% growth at this point versus industry expectation of 1–2%,” he said.
Demand has become increasingly seasonal, with strong spikes during the festive period and muted activity otherwise. “Consumers do wait for attractive offers,” Vora said, calling the demand trend “lumpy.”
Among stocks, Kotak remains selective. “Mahindra and Mahindra (M&M) continues to be our top pick, followed by Hyundai Motor and then Maruti Suzuki,” Vora added.
For the full interview, watch the accompanying video
Catch all the latest updates from the stock market here
