Netstar, a subsidiary of JSE-listed Altron, said on Monday that it has signed a joint venture deal with C Ahead Technology to offer insurance and fleet telematics in India.
C-Ahead will introduce Netstar’s intellectual property into the Asian continent, said Altron CEO Mteto Nyati. “The JV is in line with our measured global expansion plans for Netstar and will diversify offshore earnings.”
The Indian vehicle telematics market is dominated by commercial vehicles such as fleet and taxi operators, but is gaining broader popularity due to its advantages, such as safety, information, navigation, and remote diagnostics, Altron said in a statement.
“India is an underpenetrated market in the early stages of telematics making it attractive for Netstar to enter from consumer and commercial telematics perspectives,” said Netstar MD Pierre Bruwer. “In comparison to South Africa, which has a penetration rate of over 30%, the number of connected cars in India is only expected to reach 2.6% in 2020 at current rates, according to global consultancy Roland Berger in their ‘Telematics in India: Trends and Opportunities’ research.”
The report, Bruwer said, states that the commercial vehicle telematics market is expected to grow by around 25%/year, led by after-market segment and entry-level solutions and promoted by wireless connectivity, navigation, remote diagnostics and safety against theft.
Bruwer said optimisation of fuel costs as well as safety and security concerns were expected to drive growth. “Apart from commercial vehicles, the small and medium car segments offer high growth opportunities for us.”
C Ahead is an IT services company with headquarters in the US and offices in India, South Africa, Dubai and the UK.
Altron shares were last trading hands at R16.31 apiece. The stock has added 30.2% in the past 12 months. — © 2018 NewsCentral Media
