5 reasons OEMs can’t take over the GPS tracking market

Author – Mr. Vikram Kumar, Founder, Letstrack. 

GPS tracking has become one of the most emerging sectors in mobile communications and automotive industry. The ability of GPS tracking devices not only enable the owners to track and detect the accurate location of their vehicle in real-time but also allow them to take action against the theft of their vehicle.

GPS tracking industry is undergoing a paradigm shift due to the increase in the number of thefts and robbery cases in the automobile industry.

OEMs can’t take over the GPS tracking market

Despite having the right workforce in place, the global luxury car brands are associating with GPS tracking companies to get the most accurate tracking systems installed in their vehicles.  Let’s discuss the reasons behind it:

Area of specialization

It is about the area of specialization when it comes to adopting a technology which has to be accurate for customers’ safety. Customers in India are now becoming aware of the brands specializing in GPS tracking and other systems.

For instance, Audi and Mercedes have special models with BOSE sound systems or AMG engines. They know these companies specialize in what they manufacture and they do it so well that customers are willing to pay more.

 

 

 

Sales goals

OEM’s purpose is to increase sales and grow in terms of a number of cars sold per year. They prefer to engage their R & D team in developing the best design or model to attract customers. But customers now want safety and security first. To meet their requirements, OEMs now focus more on collaborating with companies which specialize in developing systems to give a sense of safety and security to customers.

Airbags are a legal requirement rather than a choice in developed countries. In the same way, specialized tracking companies offer similar safety benefits that are now becoming the foremost priority of customers.

 

 

 

Innovation

Every product offering requires innovation in its design, model, and functionality. Instead of entering into a completely new segment like GPS tracking, OEMs prefer to invest their efforts in improving their existing products.

There are several companies that are developing innovative applications that not only provide GPS tracking feature but also other benefits like information on the nearest service station, restaurant, etc. Customers nowadays look for extra benefits.
 

 


 

Team of professionals

Developing a highly accurate GPS tracking device is not easy even if an OEM employs a skilled team. Development and installation of tracking devices require a lot of effort from a different set of professionals specializing in their own field.

Application design and data tracking are not the only basic requirements for developing a GPS tracking system. One needs to ensure the privacy of user’s data collected and the reliability of the service. Service challenges are quite varied and OEMs hesitate to have a dedicated set up for them.

 

 

No after-sale service

OEMs generate revenues by selling their products. Customers want to buy only those brands that have a good name in the market. Once the vehicle is sold, customers can contact the service station at the time of need.

But if the same brand has sold their own GPS tracking system then a customer will not have an after sale service station for the device. OEMs do not have those facilities because their core business is manufacturing and selling vehicles and not developing innovative applications with an ongoing support service for vehicle upgrades.