India, one of the world’s largest markets for cars thanks to its sheer number of citizens, is going through a telematics revolution of its own, as companies start to see the benefits of keeping an eye on drivers, as well as the location of vehicles at all times. According to industry experts, the telematics business has hit a “sweet spot,” of technological proficiency and end user acceptance, that has seen their uptake increase dramatically over the past year.
Businesses too are also starting to see the benefits, with cost saving through fuel savings and vehicle wear making big impacts on the bottom line at some firms.
“Now the telematics are made available at reasonable price backed by local hardware manufacturing capabilities, we believe that we have reached the sweet spot to push adoption of these solutions across segments,” said Sanjay Nigam, CEO and President, TVS Automobile Solutions (via TheHindu).
He’s not the only one that’s been talking up telematics technology either. Anush Gopalan, CEO at Heterogenous Communications Technologies feels that the tracking technology is in the right position to be taken of advantage. In the past, he saw it as something that needed to reach maturation before he involved his company in it it. Now he is.
“A proper eco-system involving all stakeholders such as telecom operators, auto firms, hardware vendors and technology companies will augur well for industry,” he said.
Part of the reason he sees the current climate of telematics as more applicable to businesses like his, is that there’s been a lot of consolidation in the market, with companies buying 0ne another out. While the reduction in competition would usually hinder the environment for the consumer, in this instance, it’s actually made for more quality control, as there are now several big players in the telematics market, rather than tens of tiny ones.
Other growth in the telematics industry in India has come from, where else, the insurance industry. With the potential for advanced profiling and diagnostics in the event of an accident, car insurance premiums can be reduced, due to a lowering in overall insurance claims, making for a much more healthy industry than usual – where drivers can often feel ripped off or betrayed by their insurer.
Ravi Kumar Neeladri, Chief Visionary Officer of Bangalore based, Red-Sun Telematics, said, “Our solutions, which are awaiting patents, will help insurance companies save a lot of money in motor insurance business.” He also pointed out that law makers could help effect the growth of telematics in country, by creating legislation that allowed for its uses in multiple environments and encouraged the growth of local solutions, rather than outsourcing the tracking to Western companies.
Over the next few years, the telematics industry is expected to be worth as much as $30 billion across the globe, of which India will be a reasonable component. However, even with as many vehicles as it has and with a growing telematics industry, it still has a long way to go. In the same multi-year time period, the Indian telematics business is expected to expand to become worth around $150 million.
Image Source: MBWA PR
