Innovative disruption or just disrupting the after market Telematics sector?
Lately many local OEM’s are offering telematics services. Some are going to market by establishing strategic partnerships with established Telematics Service Providers (TSP). However, often the data that is derived from these systems are no different from what the TSP’s have been doing independently for almost 20 years.
The telematics market is already saturated with many competitors. OEM’s that white label an established after market telematics solution is only adding to an already congested market segment. Worse still, they might get pulled in to a fierce price war that is already happening within the segment.
So what’s the way forward for OEM’s and Automotive Distributors?
In summary, it’s great to see OEM’s and automotive stakeholders recognise the importance of digital but offering a telematics solution is nothing revolutionary. The sector is over serviced and Telcos have also jumped on the bandwagon in a market that is very price sensitive.
OEM’s and automotive stakeholders should leverage on digital but remain above “chaos” that currently exists in the telematics sector. Get in touch with us, if you want to know more