Increased Awareness Pushes Growth in India’s Vehicle Tracking Systems’ Sales

SINGAPORE, April 21, 2006 — Vehicle tracking systems sales in India are expected to increase with better awareness, increase in new commercial vehicle sales and penetration into the market.

Frost & Sullivan Industry Analyst V. Bhanu Prakash says the vehicle tracking segment of the Indian telematics market is expected to reach satisfactory levels between 2008 and 2009.

New analysis from Frost & Sullivan (http://www.transportation.frost.com/) Telematics Opportunities for India finds that the vehicle tracking systems segment of the telematics market in India earned estimated revenues of US$6.4 million in 2005 and is likely to reach US$78.2 million in 2011.

“The navigations systems market, though still in its infancy stage, is likely to take off in 2008 and the original equipment (OE) market is set to play a key role in this development,” observes Bhanu Prakash. “While the government needs to cut down the restrictions on the availability of digital maps for commercial usage, substantial support for the telematics systems could come from the growing Indian premium and luxury car segment.”

In India, the market for vehicle tracking, telematics and navigation systems is increasing as call center and taxi operators adopt the systems in the commercial vehicle segment.

“Further, rising sales of commercial vehicles and all-round infrastructure development initiatives are also helping the telematics market to gain a greater momentum and witness healthy growth by 2008,” notes Prakash.

The launch of new navigation systems by a few companies is fueling a renewed interest in the Indian telematics market and also in the related technological programs. The passenger car segment is awaiting lessened government restrictions on the usage of maps and availability of digital maps, a move that would facilitate turn-by-turn guidance in passenger cars along with accurate information on their points of interests.

However, Prakash states, “Price is a key and sensitive issue in the Indian telematics market, which provides chances for industry participants.”

As the cost of hardware and services is high compared to the cost of vehicles, it is crucial for market participants to price their product offerings accordingly to be successful in the Indian telematics market.

Overall, system suppliers and global positioning system (GPS) vendors are optimistic that the reduction in prices of the GPS chips and other allied components would significantly bring down the costs of the telematics units, which will ultimately boost sales.

Telematics Opportunities for India, part of the 4B63-18 subscription, includes research in the following market areas: vehicle tracking systems and navigation systems. This study provides an overview of the market along with an analysis on market structure, market segments, macro and microeconomic conditions and the major industry challenges. All research included in subscriptions provide detailed market opportunities and industry trends. Research is evaluated following extensive interviews with market participants. Interviews are available to the press.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the Telematics Opportunities for India then send an e-mail to Alice Chia, Corporate Communications, at alice.chia@frost.com with your full name, company name, title, telephone number, e-mail address, city, state, and country. We will send you the information via email upon receipt of the above information.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company’s industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit www.frost.com.

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Alice Chia

Corporate Communications – Asia Pacific

Frost & Sullivan

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