By Vikas Marwah
Telematics space is gaining strong traction in the Indian automotive Industry. In the coming years there will be an explosive growth of 30% CAGR till FY2030. The Union government focus on favourable policies and the shift in the regulatory framework will act as potential growth drivers.
The Indian OEMs are trying to localize telematics solutions and this will further enhance the market size. The automotive Industry is going through a transition, and its future will depend on the telematics solutions. Penetration of their applications will be significantly higher in the upcoming electric and connected vehicles.
India saw a rapid shift in the regulatory framework by adapting new norms which are equivalent EU standards. The implementation of new policies on safety also has to be supported by telematics applications in the passenger vehicle, two-wheeler and commercial vehicle segment.
Telematics ecosystem in India is at a nascent stage. To be a “Full System Supplier” it is important to develop local capabilities of design & development, software including cyber security features and of manufacturing footprint.
The Indian government has taken cognizance of the importance of developing local capabilities. The PLI scheme is giving an opportunity for the Indian suppliers to be leaders in this space and to represent India at the global level. The PLI scheme will enable the Indian manufacturers to supply telematics solutions at the global level.
New business avenues will open up with the extensive use of telematics applications in the transportation industry. New ways are getting introduced to enhance business efficiency. The data collected in telematics will change the future of insurance and accurately reflect the assets insured and provide additional layers of protection.
Telematics technology for automakers will be quickly converted into a huge global market. In essence, telematics enables transportation companies to monitor their assets by using GP. Onboard diagnostics will help them record data, such as driving habits, geographic footprint, abnormalities resulting in collisions and so on. Companies like Lumax Auto Technologies which has government-approved AIS140 and other telematics devices are at the forefront of the development of these telematics and connected vehicle devices amplifying growing technological prowess of the Indian auto component sector.
(Disclaimer: Vikas Marwah is CEO of the Lumax Group. Views are personal.)
