How Telematics Is Used In The Automotive Industry


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Continuous industrialization and rising disposable incomes worldwide have generated a massive market for the automobile industry over the last two centuries.

Automobile manufacturers must explore new business models beyond just selling their latest models, which explains their interest in telematics.

What’s Telematics?

At this point, you might have started wondering what telematics means for this industry. Simply put, telematics is a communication system for the automotive industry that relies on data traveling to and from automobiles over wireless networks.

Most original equipment manufacturers (OEMs) are being pushed into the information age by the confluence of location technology, in-vehicle electronics, and wireless communications.

How it works

Through telematics, OEMs can monitor a vehicle in real-time. In conjunction with on-board diagnostics, GPS is used to map and record the vehicle’s speed, position, route and assure the safety of the passengers and drivers using sensors.

It’s a discipline that blends telecommunications, electrical engineering, car technology (like road safety), and computer science to provide a connected driving experience.

Moreover, telematics elevates an automotive company’s game by:

Increasing their visibility

Vehicle telematics provides enterprises with insight into the locations of their vehicles by monitoring a vehicle’s position or movement using a GPS.

This is one of the most prevalent uses of car telematics, and it’s precious for businesses to keep tracking their fleet vehicles. Fleet managers may use the same capability to monitor both unpowered and powered assets, such as reefers and trailers.

Refining safety precautions

Vehicle telematics systems may be an excellent approach to acquire insight into driving patterns since they gather and monitor data about cars.

Fleet managers can also construct individual coaching sessions or training programs based on telemetry data, such as acceleration and forceful braking, to boost driver safety on the road.

Insurance firms are also beginning to employ telematics data to precisely identify risk factors and adjust insurance prices as needed.

Cutting back on costs

Telematics can quickly cut fleet fuel costs by recognizing patterns in route performance and driver behavior—insights that may lead to significant benefits on fuel efficiency.

It might be challenging to advise drivers on fuel economy if you don’t have insight into how they’re doing daily.

Specific systems may also communicate in real-time between drivers and fleet management through SMS, allowing the latter to reroute in an unforeseen road delay or heavy traffic immediately.

Embracing better maintenance practices

Several car systems are connected directly to a vehicle’s diagnostic port. This automatically collects each engine data, including engine load, fuel usage, and coolant temperature.

What’s more, it enables easy access for the fleet management teams.

This is also an excellent method for fleet managers to establish a regular vehicle maintenance plan. Car telematics providers can detect vehicle flaws, allowing fleet managers to choose when to send a vehicle into the shop.

Improving compliance actions

Telematics technologies, which automatically and electronically measure vehicle drive-time, may make it simpler to maintain ELD compliance.

Fleet managers can employ telematics systems to maintain duty status records. Some providers can even automate processes connected with annotating, amending, and certifying hours of service logs.


The emergence of telematics in the automobile sector has been a watershed moment. There are a few developing trends to watch soon as it continues to gain traction.

To build a more holistic management solution, managers will want to integrate telematics that connects easily with other elements of their organization, such as transportation management systems and even payroll applications.

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