2. Limitation of cellular coverage – The Auto Expo 2014, held in New Delhi brought to light both – the challenges for connected features in India as well as the opportunity the country holds. Kwid, a new concept car, launched by Renault at the event, houses a built-in drone that can be launched from the vehicle to detect traffic conditions and to spot obstacles on the road. The drone concept was integrated to overcome the problem posed by the only available spotty 2G network in the country. Although the mobile phone penetration in India is nearly 100%, what creates a barrier is the fact that smartphone penetration still remains in the single digits for the country. Owing to dearth of stable 3G network, lack of an ecosystem to support 4G and absence of mobile networks capable of transmitting M2M data, OEMs need to resort to extreme measures to provide real-time traffic information. 3. Pricing constraints – India is an extremely price sensitive market. This consumer characteristic, prevalent throughout the country limits the potential of innovation and new product development. The OEMs face a competition on price rather than features, making them wary of adding features that would increase the price. This attribute has also created a low barrier for entry in this sector, resulting in mass produced inferior quality products infiltrating the market. Such operators make quick money and shut down operations, leaving a bad taste for new products. To combat these issues, it is important to choose players that demonstrate commitment and experience in this sector as well as can develop innovative solutions to address the challenges. Today’s telematics technology provides a cost-effective way of controlling and organizing vehicles and mobile workforces for the emerging markets. The advancements in mobility solutions will enable development of designs that makes transportation safer, efficient, and convenient. www.telematicswire.net
Will vehicle telematics make a difference? The Indian Logistics industry is a complex system. It includes Shipping, Transportation, Customs Clearance Activities, Packaging, Warehousing & Distribution, and other allied activities including mandatory clearances, dealing with multiple agencies. It is estimated that Transportation and Logistics costs account for around 14% of Total Costs of goods in India; this puts the industry at around $75 Billion at current estimated GDP. Similarly based on some estimates, there are pending projects to the tune of Rs.7 lakh Crores, conservatively the project logistics requirements would be around Rs. 50,000 Crores. As impressive as the numbers sound and look, they hide the fact that it is a very fragmented industry. It consists of multitude of small fleet owners. It is characterized by a lack of professionalism, severe wastage costs, low labour qualification, and lack of technology adaption. Moreover, it is an industry that is dominated by a single overriding factor that of cost. There are few opportunities where service matters more than the cost. The scenario for capital expenditure in this country looks robust, particularly in the next 5 years. With a stable government which is bullish on growth, especially infrastructure, we may witness a move ahead in terms of the stalled projects. Once these take off, the flow of capital goods for these projects will follow with a lag of 6 to 9 months. Thus overall I’m pretty hopeful about the potential of growth in the next 5 years. The Power sector will be the leading industry. Mining, petroleum and public infrastructure will also be the key drivers. Also with thrust on renewables, we can expect an increase in project cargo of wind and solar power. The government’s push for “Make in India” initiative will further boost the manufacturing sector in India and therefore the Project Cargo business, as more and more companies will look to start or boost their manufacturing bases in India.
Sharmila Amin Managing Director-South Asia Bertling Logistics India Pvt Ltd Bertling Logis cs is more than 150 years old privately held company with 65 offices in 35 countries and staff strength of more than 1100 personnel worldwide
This sector faces many problems and is plagued with many ills. But having said that, we must not forget that Indian ingenuity and the desire to get the job done has meant that we have overcome all the problems faced so far. Vehicle telematics has great future more of a necessity rather than want in this country considering that we are poised for double digit GDP growth and this will be a need for the future, especially with GST coming into force as well. Any system with transparency to the cargo is always beneficial. Not only are you aware of the safety of the cargo but also can monitor that the drivers as well as the vehicle is driving as per the speed limits specified for a package as well as required local rules and regulations. Yes, the customers benefit the most as they also get to know vehicle location through password secured system and can also have hands on report of their consignment.
May - June 2016 | Smart Automotive | PG.17
