The telematics industry in India can be broadly classified into vehicle tracking and vehicle navigation systems. Although still at a nascent stage, the vehicle tracking segment has witnessed rapid increase in demand, particularly from commercial transport and truck operators. This is because such vehicle tracking systems can significantly cut down on operating costs, thus enhancing profitability. Other forms of vehicle tracking systems based on global positioning system (GPS) are fast gaining popularity among the population, helped by the rise in disposable income among the country’s middle class. However, given the high cost of installing such equipment, the market remains limited to the high-end and luxury vehicle segments. At the same time, increasing car sales within the country have also led to demand for vehicle electronics systems such as those for engine monitoring and other forms of high-tech dashboard display. Many of these systems are also being installed by the elite classes in their vehicles for fancy display purposes, and in turn, providing a boost to the vehicle electronics manufacturing industries. Hide this