KUALA LUMPUR (Feb 11): At least two major car manufacturers in Malaysia are planning to include telematics in mass-market vehicles. The move is deemed a game changer as it can change the way vehicles, drivers, insurers and bankers interact.

Quoting industry sources, The Edge Malaysia business and investment weekly (Edge Weekly), in its February 13 - 19 issue reported that the car manufacturers planned to pre-install in a vehicle, a device, which could capture and transmit information. This means car owners can monitor and communicate with their vehicles from afar using a mobile application.

“Yes, this is all very good but we worry that consumers won’t want to fork out the extra money for it. Don’t forget that car prices in Malaysia are already high and this is a very price-sensitive market that we are dealing with,” a source said.

“I doubt anyone wants to do anything that impacts their margins. This year is looking tough as well,” he said.

Another source said if a vehicle could always be tracked, banks would be more comfortable in approving hire-purchase loans on the assurance that the vehicle could be recovered.

“Better approval rates for loans will increase vehicle sales. That’s what the carmakers are looking at. Sometimes, banks are scared to lend money to people. What if, after three months of paying instalments, the car just vanishes?” the source said. 

For a better understanding on the connected-car conundrum in Malaysia, kindly pick up and read the latest Edge Weekly issue.

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