A new report from Frost and Sullivan, entitled Strategic Analysis of Commercial Vehicle Telematics Market in China, has revealed that the commercial fleet operations in the country are set to adopt telematics on a big scale in the next seven years, thanks to a big push by local government with regulations designed to encourage its usage.
Recently, the Chinese government made it mandatory that fleet vehicles come with pre-installed satellite positioning and telematics systems, in order to better improve their fuel economy and reduce vehicle wear. Previously Chinese fleets were considered some of the worst polluters in the world, with poor fuel economy. The government believes that with the initiative of forcing telematics, over the next few years we’ll see big reductions in the amount of fuel China consumes. This will not only be good for the economy and the environment, but means over the next few years the number of vehicles with telematics installed in China, is going to grow rapidly.
To date though, the uptake of telematics in China hasn’t been particularly strong, for a number of reasons:
“Apart from the high prices of telematics, which are often equivalent to a small fleet operator’s profits, the varied polices of local governments on commercial vehicles also peg back adoption rates,” said Frost & Sullivan Automotive & Transportation Research Analyst Will Wong of the report. “While changes in the regulatory framework are unlikely, varied local governments’ requirements will be a long-term challenge as they complicate the business of fleets.”