China: Understanding the effect of legislation on telematics

From SBD:

The Chinese government keeps close control of the emerging OE telematics industry through a complex network of licensing requirements. These licenses are operated by the Ministry of Industry and Information Technology (MIIT) focused on telecommunications-related licenses and the State Bureau of Surveying and Mapping (SBSM) responsible for the new Internet-based mapping licensing.

The MIIT is responsible for a wide range of licenses related to Value-Added Telecommunications Services (VATS). These VATS include the licenses critical for OE telematics services. Restrictions on foreign companies gaining these incenses are a major obstacle for vehicle manufacturers planning to launch telematics services in China.

While the Chinese government’s licensing requirements are having a restrictive effect on OE telematics, other legislation is set to encourage the deployment of automotive services. In the short term, the Chinese government has introduced new legislation mandating the monitoring of new-energy vehicles (such as electric vehicles) that may lead to the fitment of remote diagnostics telematics systems.

In the longer term, SBD has analysed the likelihood of the introduction of legislation relating to four telematics services: eCall, Road Pricing, Stolen Vehicle Tracking (SVT) and Electronic Vehicle Identification (EVI). Of these four, EVI is identified as the most likely to generate legislation.

Read more here.

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