The growing emphasis by Indian states and central governments on road safety and emission norms is, analysts believe, likely to benefit WABCO India (WIL), which dominates braking systems, and is a prominent player in safety solutions in commercial vehicles. Wabco is among the top stocks in the Pataka Screener - stocks with more than 20% upside according to analysts

By October this year, safety features such as dual airbags and antilock-braking systems (ABS) will be mandatory in all new car models. And from October 2019, all cars in production will be required to meet these standards . The company currently has an 80%+ market share air braking systems in commercial vehicles. 

This is a boost to Wabco - ICICI Securities estimates that with ABS potentially getting mandated for commercial vehicles as well, WIL will have an incremental revenue potential of ~Rs. 3,000 crore. Another big source of growth is AMT - Automated Manual Transmission - which Wabco has already sourced from its parent company, and becomes more likely as India moves towards stricter emission standards.

The growth potential in India is significant for safety equipment compared to global standards - such content per vehicle in India is at around $500/vehicle, very low compared to US & Brazil, which are at $1500 & $1000, respectively. The share price of Wabco India is currently at Rs. 5,800, below an average broker target of Rs. 7,000.