While the cost difference between a CBS and a non-CBS bike is around Rs 1000, an ABS fitted bike escalates the cost of the vehicle by over Rs 10,000
Bike prices are expected to increase sharply from April 1 due to regulatory compulsion of installing each new vehicle with anti-lock braking system (ABS) and combined braking system (CBS).
According to the industry estimates, while the cost difference between a CBS and a non-CBS bike is around Rs 1000, an ABS fitted bike escalates the cost of the vehicle by over Rs 10,000.
As per the government notification, all bikes over 125 cc engine should come installed with ABS technology while those under 125 cc should have CBS technology from April 1.
The mandatory installation of the braking technology is due to safety reasons. ABS allows the wheels on a vehicle to maintain rubbing contact with the road surface while braking, preventing the wheels from locking up, thereby avoiding uncontrollable skidding. CBS, on the other hand, links front and rear brakes. In this system, the rider's action of depressing one of the brake levers applies both front and rear brakes.
Speaking on the sidelines of the launch of Executive Discover 110 and Discover 125 on Wednesday, Eric Vas, president (Motorcycles), Bajaj Auto Ltd, said that managing the cost of ABS/CBS would be a challenge for the industry in coming months. "Any price hike has its implication."
" I would say that it will certainly cause some pressure on the market" Erich said adding, the strengthening of commodity prices would be another challenge for the two-wheeler industry in coming months.
The industry will have to face the price hike in April, almost a year after it had to shift to BS-IV engine. Interestingly, Bajaj Auto's MD Rajiv Bajaj had created a stir within the industry when he alleged in February last year that that most of his competitors are attempting to exploit the technicality of BS-IV emission deadline date in order to drag its implementation further.
As per an industry estimate, the production cost of two-wheelers had increased between Rs 1,000-7,000 on account of BS-IV compliance implementation.
"As a result of which, companies like us that have already invested heavily in making its vehicles BS-IV compliant stand to lose on account of passing the increased cost of production to the customer. While those companies which are dragging its feet and delaying it are not only at price advantage but also continue to spoil the environment," Bajaj had earlier said.
Meanwhile, Bajaj auto had in December posted 30% rise in total sales at 2,92,547 units in December 2017 as against 2,25,529 units during the similar period in 2016.
Its total sales include 149,509 units domestically and 143,038 units of exports, registering growth of 25% and 35%, respectively, over December 2016.
GOING UPHILL
- The industry faces the price hike in April, almost a year after the shift to BS-IV engine
- The mandatory installation of the braking tech is due to safety reasons
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