Hero Flags Risk of 'Regulatory Complexity' Amid Safety Push

Firm cites cost concerns as anti-braking system becomes must for all two-wheelers from Jan

- Ayaan Kartik & Manas Pimpalkhare

The country's largest two-wheeler company, Hero MotoCorp Ltd, has added "regulatory complexity" as one of the new key business risks at a time when the Ministry of Road Transport and Highways (MoRTH) is rushing the two-wheeler players to implement anti-lock braking systems (ABS) to increase safety.

Hero said in its latest annual report that frequent regulatory changes increase cost and require process realignment, which is a concern for the company. The disclosure in the annual report came after a delegation of Society of Indian Automobile Manufacturers (Siam) members met the secretary of the road transport ministry on July 9 to discuss the rollout of ABS regulations.

Hero, TVS Motor Co. Ltd, Bajaj Auto Ltd, and Ather Energy are among the members of Siam.

The government has made ABS mandatory in all two-wheelers from January 1 to improve safety. ABS helps provide better traction during braking, reducing skidding and accidents.

Currently, only two-wheelers with engines above 125cc are required to have ABS, which is about 16% of the two-wheeler market.