Western media has been having a field day reporting on a 120-km traffic jam on China’s Beijing to Tibet motorway. The jam lasted nine days but has now been cleared. The congestion has been blamed on a combination of road repair works and trucks attempting to avoid tolls.

Traffic congestion looks set to stay as a national headache in China as the country continues to rapidly motorise in response to its booming economy. This is one of the key drivers for the growth in in-car navigation and telematics services such as traffic information and dynamic route guidance.

According to research conducted by SBD, the factors that are producing a consumer pull for telematics include traffic congestion, fear of vehicle theft and demand for reliable emergency assistance services. The technology factors that are providing a push for telematics include the widespread availability of competing cellular networks and government support for the deployment of in-car services.

These services have received high level national government support through the 11th Five-Year Plan that guides economic activities in China for 2006- 2010 with a likely continued support covering 2011-2015. The Chinese government supports telematics as it is seen as a useful tool in achieving its high level aims of economic growth, reduced vehicle emissions and the reduction of traffic congestion.

For more information on the market drivers for telematics in China, contact Juanita Appleby on jappleby@sbd.co.uk