Although dominated by commercial vehicles such as fleets and taxis, the Indian market for vehicle telematics is set to gain greater momentum. It is gaining broader popularity due to its advantages such as safety, optimisation of fuel costs, information, navigation and remote diagnostics.
It is with this in mind that Netstar, a subsidiary of JSE-listed Altron, has signed a joint-venture deal with international IT services and solutions company C Ahead Technologies, to offer insurance and fleet telematics in India.
“India is an underpenetrated market that is in the early stages of telematics; making it attractive for Netstar to enter from consumer and commercial telematics perspectives,” says Pierre Bruwer, MD of Netstar.
In comparison to South Africa, which has a penetration rate of over 30 percent, the number of connected cars in India is only expected to reach 2,6 percent in 2020 at current rates, according to global consultancy Roland Berger in its Telematics in India: Trends and Opportunities research report.
The report states that the market for commercial-vehicle telematics is expected to grow by around 25 percent per annum, led by aftermarket segment and entry-level solutions and promoted by wireless connectivity, navigation, remote diagnostics and safety against theft.
“We have the experience and technology stack to provide affordable and relevant vehicle tracking and fleet-management solutions to many C Ahead customers and partners as part of our growth strategy,” says Bruwer.
With 14 years’ experience, C Ahead has its headquarters in the United States and offices in India, South Africa, Dubai and the United Kingdom.
“We continuously research global companies for new opportunities that will allow sustained growth. The launch of the C Ahead Netstar JV in India will enable us to offer a new portfolio of solutions through telematics to our existing and new customers.
“Given the size of the Indian market and its rapidly growing telematics business, we are extremely confident of exponential growth,” concludes Sandeep Sekhar, chairman and CEO of C Ahead.