Telematics is going to kill the aftermarket!

(spoiler alert: the opposite is true)

The Uncertainty:

People fall into a three categories regarding telematics:

  • Uninformed
  • Learning
  • Embracing

The shame is more people are likely in the Uninformed category. They are fearful that the automotive OEMs are going to push them out of business in the next few years. They believe that their automotive service businesses (examples are suppliers, service providers, marketers, etc.) are in danger. I have felt that same angst before, not knowing the future. Uncertain events that are going to effect me, cause concern for me.

The Problem:

People seem to always fear the worst. So let's set the scenario straight. It is early stages in the life cycle of the Telematics market. However, spend a few moments looking at the market, data and projections. You will begin to see that almost all parties (providers, suppliers and even the vehicle owners)  will DEFINITELY gain from the adoption of Telematics.

Below is a graphic for you on what the Telematics market looks like from the numbers. 


Here two key things to note:

20+ years - even with rapid adoption is the time to replace all the vehicles
11.6 - average age of vehicles are high (and potentially rising).

Take home message:

Auto Care is not going anywhere in the near term. For all the auto care service facilities and their suppliers, good news, you have 20+ years of runway before things as you know it have REALLY changed because of Telematics alone. Things will stay the same. However, therein lies an opportunity to embrace a change to your benefit. The smart folks are already embracing or figuring out how to set themselves apart using the coming change. You ought to consider it to. I'd be happy to suggest ideas.


So the next step is thinking about how to use Telematics to your advantage. Here are a few ideas to get you started:


Vinay Raman is the co-founder and CEO of CAARMO.

CAARMO is a global Loyalty Telematics provider to auto care service providers. We believe improving visibility and connection between the service proivder and the customer is critical to improving the auto care industry.

Click below to get info about Loyalty Telematics: