SBD's report titled "The key market drivers for telemaitcs in China" assesses the important factors that are encouraging vehicle manufacturers to offer OE telematics.

These include:

• Car ownership is growing.
• Statistical analysis of vehicle theft and the impact of insurance companies promoting security features. Most importantly, the psychological fear of Chinese consumers of vehicle theft.
• The success of local aftermarket suppliers shows a consumer need and market awareness of what telematics services can supply.
• The confusion and segregation of public emergency services presents an opportunity to fill the market gap.
• Due to increased car ownership, traffic congestion is a major problem for Chinese drivers.
• Technical issues are still being faced with cellular coverage but technology is being deployed and facilitates a good platform for telematics services.
• Key government ministries in China are supportive of telematics as they recognise the benefits for traffic and safety, but also its revenue generating advantages.

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.

Request more information about this research by contacting Juanita Appleby on jappleby@sbd.co.uk