Many countries, notably throughout Asia and the Indian subcontinent, are making significant investments in their transportation infrastructure. New development projects will support factories, bring goods to market and provide reliable, fast transit for their people as they begin to purchase and own vehicles for the first time.

Economies such as China, Vietnam, India and Sri Lanka are building roads, bridges and railways as quickly as possible.

Opportunities in India

A report by industry analysts TRN Ltd. evaluates the opportunities available to companies in India for vehicle tracking and fleet management in light of economic and policy development decisions made by the government.

There will be national elections in 2014 and there is some concern that there will be a change in this very progressive policy. Interviews conducted with more than forty leading industry figures in India and around the world through late 2012 and early 2013 yielded the following findings in their report:

India’s infrastructure investment plans budget for nearly US $1 trillion over the coming five years. These plans will include construction of an additional 15,000km of highway by 2017 that will drive demand growth for tracking and fleet management throughout India.

400,000 new buses will be required by 2017, representing one of the biggest opportunities for fleet management and location based services thanks to recent policy initiatives by central and local government. Recent calls for improved security will further boost the public transport demand for vehicle tracking.

US Fleet Management Abroad

Market opportunities in India have attracted tracking and fleet management solution suppliers and investors from Europe, USA, Canada, Taiwan, Singapore, Russia, China, Israel, South Africa, and others. They are discussing a series of branded and white label distribution deals, M&A and equity investments.

Companies concerned with the health of the market in the United States need to only look outside the country. The United States is continuing to establish better trade relations with developing nations, allowing for bilateral or regional trade agreements to make the business climate even more conducive to foreign investment abroad.

This rapid growth of transportation infrastructure in India and other foreign countries has allowed more US fleet management companies to become international. US companies can use this opportunity to expand, creating more revenue and jobs. At the same time, newly established fleets get to work with experienced US management companies. That’s a win-win.




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