Originally published on Navibiz.com.cn
NAVIBIZ: What is pushing Stolen Vehicle Tracking (SVT) services around the world?
Stephen: There are two major market drivers for SVT services ~ government legislation and the demands of the insurance industry. The leading example of the impact of government legislation is Brazil where SVT has been mandated for all new vehicles from later this year. In addition to government legislation, SVT is being driven by some insurance companies in Europe specifying the fitment of SVT, particularly for vehicles in high-risk market segments.
NAVIBIZ: What can be learnt from the Brazil experience?
Stephen: Despite many legal challenges and delays in the implementation schedule, the Brazilian government is pushing ahead with plans to mandate anti-theft devices on all new cars by the end of December 2010. These required devices include an immobilizer and a telematics unit capable of providing remote immobilization and SVT.
Although the wiser vehicle manufacturers have been monitoring the Brazil legislation for many years and have developed solutions, a significant number of carmakers have been caught unawares of the legislation and are now scrambling to catch up and be able to deliver compliant vehicles in time.
SBD recommends that vehicle manufacturers in developing markets such as Brazil, China and Russia invest significantly in monitoring and understanding the legislative environment for each market. This will reduce the possibility of the vehicle manufacturer being "surprised" by new legislation with the associated costs of having to quickly develop solutions.
NAVIBIZ: What are insurance companies specifying?
Stephen: Insurance companies in many European countries are demanding the fitment of SVT in both high-risk and high-value (over approximately €50,000). In addition to this obligatory fitment, many insurance companies provide discounts to the cost of insurance cover for voluntary fitment of SVT systems. These discounts vary from up to 80% off the cost of theft insurance in Italy to 5% off the total insurance premium in the Netherlands and UK. In addition to the fitment of the SVT insurers demand that their customers have an active subscription to an SVT service provider.
SBD predicts that the market for aftermarket SVT products will decline in the short-term as vehicle manufacturers increasingly offer pan-European accessory SVT systems. In the medium-term this decline of the aftermarket will continue as vehicle manufacturers start integrating SVT within their OE telematics products based on a bundle of services also including eCall, bCall, connected navigation etc.
NAVIBIZ: What are the key system design issues for the telematics industry?
Stephen: Vehicle manufacturers and their suppliers have to balance the costs and benefits of different types of system implementations for each telematics service. SVT systems require high levels of security with the extra costs generated by these design features. Other telematics systems, such as simple eCall boxes, can be provided at a relatively low cost of perhaps €60 for mass market implementation.
One universal system providing all telematics services is a key aim for vehicle manufacturers. However, the provision of SVT providing secure data collection and delivery has the potential to add a significant cost premium to any system, unless the requirements are considered right at the very start of the development process.
My presentation at the Telematics@China Tour seminar in Shenzhen on September 21 will provide further insight into the lessons that can be learnt from Brazil and the impact of insurance requirements on SVT Further information on SBD's research and reports is available at www.sbd.co.uk
