Telematics in South America set to take off

South American vehicle sales are forecasted to reach 4.5 million units by 2014, with Brazil accounting for 60% of the total, according to Brazil’s car makers.


“In a macroeconomic sense, Brazil has greater stability, more per capita income, more jobs and more credit than before,” says the National Association of Motor Vehicle Manufacturers; Brazil (ANFAVE).



South American vehicle sales are forecasted to reach 4.5 million units by 2014, with Brazil accounting for 60% of the total, according to Brazil’s car makers.


“In a macroeconomic sense, Brazil has greater stability, more per capita income, more jobs and more credit than before,” says the National Association of Motor Vehicle Manufacturers; Brazil (ANFAVE).


 In percentage terms, car sales are even more impressive in Peru. The market is tiny, with just 116,000 cars sold in 2010, but that was triple the number sold in 2006. In Argentina and Colombia, respectively, new-car sales last year gained 50% and 25% over unit sales in 2006.


That being said, Latin America has one of the highest theft rates in the world, making security one of the key reasons that telematics has a place in the market. This focus on security has created a demand for additional value added services such as navigation and infotainment, both in the consumer and commercial market, says the association.


“Whilst telematics is not new to the Latin American industry, I think we have reached a tipping point, and with imminent legislations, plus the number of organizations competing to grab a share of the market opportunity, I think there will be a lot to look out for,” says Precksha Saksena, director at Telematics Update.http://analysis.telematicsupdate.com/


It is critical for telematics providers to understand how automakers, the government, hardware manufacturers, and tier one technology suppliers visualize business models, technology and strategy developments in this field to design products and timelines in-line with current trends, says Saksena.