technology is expected to become a standard automotive equipment by 2020.
Till now, the Indian
telematics market has grown at a steady pace owing to factors like early
adoption, upgradation of infrastructure and government regulations. After 2010,
companies like Ashok Leyland, Mahindra & Mahindra and TATA have ventured
into the telematics business. But, in the coming years, with the increase in
awareness level, the growth of Telematics industry is a necessity. It has to
In India, Heavy commercial
vehicles (HCVs) have accounted for majority of the market share till now.
However, with the increasing need for fleet management, Medium Commercial
vehicles (MCVs) are also expected to register significant growth in telematics
market over the coming years.
India’s Commercial Vehicles
Telematics Market will exhibit rapid growth in the coming years. Initiatives
like Toyota’s “Toyota Connect” for cars, “Tata SkoolMan” for school buses,
“Tata FleetMan”, Eicher Drive Telematics, JCB’s “Livelink” and Mahindra &
Mahindra’s “Digisense” from the major CV players of India prove that our market
is placed in the right direction for growth in the Telematics segment.
The vehicle OEMs and
telematics suppliers are upbeat about the increasing demand as awareness is on
the rise with government involvement on passenger safety. With policy
initiatives by central and local government, a prerequisite of 400,000 new
buses is required by 2017. Such Initiatives, rising fuel prices and minimal
profit margins in transportation industry are forcing the fleet operators to
gain an edge through adoption of features such as vehicle tracking, route
calculation, checks on fuel pilferage and other telematics capabilities.
As per the experts, the Indian
Vehicle Tracking Market is set to double in size by 2017 and the India
Commercial Vehicles Telematics Market installed base is projected to reach 1.4
million by 2022.
With factors such as
increasing awareness level, potential market & policy initiatives, market
is today in the right direction for growth in all segments. OEMs are creating
new products and in parallel with market consolidation through M&A taking
place, the foundation for Telematics industry is strengthening.
(Source: Commercial Vehicle Forum 2016)