Telematics in India

1. Telematics in India The Road Ahead

2. What is Telematics? • A blend of computers and wireless telecommunications technologies • Merging of Automotive, Information Technology, & Mobile communications industry

3. Key Drivers for Telematics • Safety & Security • New lifestyle requirements • Brand differentiation • Loyalty and Customer Relationship • Mobile Networking • Highly mobile professionals, average 1.5 hours behind wheel /day

4. Telematics Value Chain

5. Infrastructure Needs

6. Infrastructure • Wireless Networks • GSM/GPRS, CDMA, Wireless LAN, 2.5G, 3G, Satellite • Telematics Host Platform • GPS receiver and antennae, control board, and communications capability • Common interface that will enable electronic devices and services to operate across different vehicle platforms: AMI-C • Telematics Service Providers • To provide drivers with information they need • Roadside assistance teams and emergency service teams • Traffic information centers • Centers for fleet management, security alerts, remote diagnostics, and customer relationship management • Mobile Internet Access • Internet access over wireless network

7. Telematics (with Location Based Services) Wireless Carriers Voice Recognition GPS Location based M-commerce Call Centers Telematics & Location-based Services Consumer Electronics Internet / Content Wireless Services

8. Growth of Automotive Industry in India • 65% of freight, 87% of passenger traffic by road transportation • Traffic on roads grows at 10% per annum • Production capacity to reach about 10 million vehicles per year • Vehicle population growth - 12% per annum, 200 mn vehicles in India by 2021 • 7 vehicles per 1,000 persons, 48 % of vehicles ply in the metros • Total cars in India - 3.53 million 3.3 million kilometers of road network, the second largest in the world

9. Strong Attributes: Indian Scenario • Automotive industry - Very strong players • IT giants with strength and turnover comparable to international IT players • Mobile companies with wide coverage, keen to offer more and more services to get customers • Call centers at a profitable rate than in other countries • Road transportation sector poised for growth

10. Telematics in India (Current Status) • GIS applications market at a small scale • Navigational aids available in internet • Vehicle Tracking System in production plant for Maruti Udyog • In some states, Road Transport Corporations run buses with GPS receivers, as a pilot study • Location of the bus at any time, its speed, and its arrival time available at control center

11. Telematics Services (Opportunities in India) • Different services based on vehicle type • Passenger cars • Vans, Trucks, Taxis, ambulances • Public Transport • Services • Fleet Management • Remote Diagnostics • Security • Convenience voice & data services • Safety

12. Fleet Management Trucking Technology • 1.2 million trucks crisscross the country covering more than 80,000 kilometers of roads • Track and guide vehicles • Time vehicles spend- running & stationary, route,directing resources • Improvement in security • Ability to identify and authorize truck drivers • Reroute transfer of perishable goods • Lock and unlock cargo • Security for locations such as air ports, power plants • GPS based electronic fencing, transportation of dangerous materials

13. Fleet Management • Asset Management • Ambulances, taxis, public transport buses, trucks, semi-trucks, and school buses • Information to control vehicle running costs • Fuel flow data, oil pressure, coolant temperature, distance covered, driver payments • Intelligent transport • Information on arrival times for buses, trains • To organize bus fleet service schedule, or design future road schemes • Toll collection • Debit from a bank account or with a dedicated card by getting the vehicle details

14. Remote Diagnostics • Auto manufacturer directly connected to their vehicles throughout the lifecycle • To know and control state of condition of every vehicle - Diagnostics • To provide best possible service and customer satisfaction - Customer relationship improvement • Minimize product warranty and liability risks • Statistics about the particular car model • Data on pollution free operation of the vehicle can be used by Government

15. Security • Stolen Vehicle Tracking • Provide geo-fences • Radio signals from vehicle picked up by a specially equipped police vehicle • Remote Vehicle Immobilization • For vehicles crossing unauthorized territories or stolen vehicles

16. Security • Driver identity systems • Hand print, iris marking, facial recognition, or other biometric encryption to identify driver and allow car to be started • Remote unlocking • Car’s central locking system interfaced to Telematics service

17. Convenience data & voice services • Navigation & Traffic Information • Nature and length of traffic delays • Impact on journey times • Direction of vehicles involved • Effect on traffic in opposite direction • Localized weather incidents • Navigational aids • Mobile internet • Useful and valid contents of www to driver • Financial trading - Share tracking • News updates - Sport updates • Audio-Visual entertainment (Accessing www suggested only during park up)

18. Convenience data & voice services • In-Car Infotainment • Voice accessed e-mail, SMS, Film and Audio downloads

19. Safety

20. Safety • An SOS button in the car • Notification of air bag deployments • Emergency roadside medical assistance • Access to medical records database

21. The Road Ahead • Program plan with a ten year vision • Establish a consortium • Clear objectives • Identify the Telematics systems to grow in India • Open invitation for company participation • Implementation to begin with metros • Field rests • Policy for data security • Address risks - India’s own Satellite systems - Triangulation with existing cellular network Fleet applications start off immediately Telematics black boxes to fit to existing vehicles New vehicles to have the system integrated

22. Proper Payment System • Shared SIM card • Single subscription rate for two identical cards • One card will be in vehicle, connecting it with outside • Other card used in personal phone • A single bill issued every month for combined services

23. Business Opportunities • Total cars in India - 3.53 million • Car production in 2002- 5.75 Lakhs • Mobile phone Market size • Around Rs. 33 Billion, CAGR of 20% • 10 millionmobile users • Internet commerce revenue • 214% Average annual growth rate • Rs. 400 Billion by 2004

24. Telematics Market Value in India • Estimated at Rs. 31 billion per annum • Assuming every vehicle off the assembly line and half of existing vehicles to be fitted with a telematics system • Monthly charges of Rs.500 per vehicle • Comparable to cable television and mobile-phone bill • More realistic: Rs. 15 billion • Assuming half of new vehicles and quarter of existing vehicles with Telematics system • Growth rate in vehicles, hardware industry, will add to the above figures

25. Revenue • Revenue mainly from recurring services • Downloading audio, video packages • Vehicle manufacturers • Risks of investing heavily - high for automotive companies • What features customers are willing to pay for? • How much are they willing to spend? • Safety and security, and Remote diagnostics

26. Who will gain? • Vehicle manufacturers • Exploit remote vehicle diagnostics to improve vehicle performance and capitalize on customer relationship opportunities • Mobile operators • Benefit from increase in wireless data and voice traffic • Equipment manufacturers • Develop products catering to future applications • Telematics system & service providers • Sell products and services • Content & application providers • Migration and integration of existing and new wireless services into Telematics systems • Transport companies • Improve operational efficiency, quality of service, safety and security, reduce costs, and monitor vehicle/driver

27. The Challenges • Consumer needs understanding • Innovation and product development lifecycles • In-car integration • Standards • Partnering • Pricing and profitability

28. Bottlenecks • Effective Telematics systems • Lack of coverage or high speed coverage • Reliable and stable network coverage • Customer indifference • Multiplexed vehicle bus ubiquity • Combining Automotive and Technology • Expenses involved • Economic slow down • GPS signals blocking by equipments • Ownership of the customer not well defined in Telematics • Lack of good roads

29. Tata Elxsi Competencies Tata Elxsi provides overall Telematics system integration • Product development • Design and engineering • Design and development of a Telematics host platform • Design & Implementation of OSGi platform • Consumer Electronics • Joint product development • Instrument clusters • UI development for LCD displays,Touch Screen Panel,Keypad and IR Devices Hardware Design and integration • ASIC / SoC design • FPGA programming • Board design • Firmware development • Wireless communication, Communication Systems, Bluetooth, IEEE 802.3/ 802.4

30. Tata Elxsi Competencies Tata Elxsi provides overall Telematics system integration Car Networking, communication protocol development and integration to enable data/voice/video transport • Gateway implementation between different Networks • CAN, SAE J1850, Keyword 2000, Class2 network • MOST and IEEE 1394b – high-speed network candidates for in-vehicle networking • Multimedia Codec development and optimization for Car Audio/ Video devices • Drivers and embedded software development for Car Audio/Video devices and Telematics systems Micro controller based embedded system development with expertise on Motorola, Infineon, ST Micro, Hitachi, Mitsubishi, and ARM micro controllers

31. Tata Elxsi Partnerships • Tata Elxsi -a contributing member of AMI-C (Automotive Multimedia Interface Collaboration) • AMI-C, A global consortium of world’s leading vehicle manufacturers, Telematics suppliers and industry experts that aims to establish common multimedia interfaces in future automotive information and entertainment systems • Working to reshape the way automotive and consumer electronics systems interact through development, promotion and standardization of a common, open interface

32.   References • Automotive Telematics- The one-stop guide to in-vehicle telematics and infotainment technology and applications, Dennis Foy, Red Hat Publishing, 2002 • A road map for Telematics, The McKinsey Quarterly, 2002 Number 2, Anjan Chatterjee, Hans-Werner Kaas, T. V. Kumaresh, and Philip J. Wojcik • The road ahead for Telematics, The McKinsey Quarterly, 2001 Number 2—François Bouvard, Andreas Cornet, and Philip J. Rowland • Road Safety Cell, M/O Road Transport & Highways. • The Effect of Telematics on the Automotive Industry, Business briefing: Global Automotive Manufacturing & Technology 2002, Nick Disange • Telematics and Location-Based Services: Collateralization, Institutional Research, Dain Rauscher Wessels, Jonathan Lawrence, Mitchell Leung • Ministry of Road Transport and Highways, Government of India, http://morth.nic.in/ • Booz Allen and Hamilton Analysis