Two-wheeler stocks decline as UBS calls India’s proposal to make ABS mandatory negative for sector

UBS is of the view that Hero MotoCorp remains the most exposed as 77% of its revenue is derived from domestic non-ABS two-wheelers. Exposure for scooter-heavy companies such as Honda and TVS is 70% and 52%, respectively, it added. The broekrage expects the impact on Bajaj Auto to be relatively limited at 21% while said Royal Enfield is fully-immune as all its motorcycles are fitted with ABS.