Active vehicle safety for road vehicles has gained attention due to the increase in vehicle numbers, the increase in the functional speed of the vehicle, and improved road infrastructure. A Road Safety Annual Report published in the year 2022 highlighted that worldwide road fatalities have increased by 10% compared to the previous year. A report on Road Accidents in India - 2022 published by the Ministry of Road Transport and Highways, Government of India, states that road accidents and fatalities have increased by 11.6% and 9.3%, respectively, compared to the previous year. In that, a total of 1,68,491 road fatalities were reported, in which Heavy Commercial Road Vehicles (HCRVs) were involved in accidents that resulted in 44,090 fatalities. Implementing an Antilock Brake System (ABS) in vehicles could potentially retain vehicle stability during emergency braking. Accurate wheel speed information is essential for the physical realization of the ABS. A cost-effective, passive-type Variable Reluctance - Wheel Speed Sensor (VR-WSS) is widely used for ABS implementation in HCRVs. However, real-time wheel speed measurement in HCRVs is challenging due to noise and non-synchronized random signal interference. Additionally, a typical Electronic Control Unit (ECU) can only detect analog wheel speed signals with amplitude above a certain cutoff voltage. These aforementioned practical measurement limitations impair the performance of ABS in terms of braking distance and braking efficiency and may lead to undesired consequences on vehicle safety. Therefore, an appropriate signal processing algorithm is required to mitigate such limitations in wheel speed measurement and to ensure ABS performance. Hence, this work focuses on the design of a Wheel Speed Processing (WSP) algorithm, which consists of outlier remover, denoising filter and missing data evaluation block. A mathematical model and performance criteria have been developed to determine a feasible wheel speed measurement region. The WSP algorithm is calibrated with the proposed performance criteria, and appropriate thresholds have been obtained using wheel speed measured on a brake dynamometer. The scope of future work will be the evaluation of the proposed WSP algorithm in a Hardware-in-Loop (HiL) experimental setup using IPG TruckMaker® and on-vehicle. Further, fault identification and isolation techniques will be developed for the mechanical faults in the pick-up coil and pole wheel. The outcomes of this study are anticipated to contribute as a vital element in developing an indigenous ABS solution for HCRVs.