brief survey of telematics industry russia june 11
DESCRIPTION
Brief survey of telematics industry in Russia with focus on Stolen Vehicle Recovery and ERA GLONASS projectTRANSCRIPT
© 2011 AutoLocator, Moscow
Brief survey of automotive and telematics industry, Russia
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© 2011 AutoLocator, Moscow
Project Environment, Russia
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Territory: 17,075,400 km2
11 large cities 1,140 medium-sized towns 240,000 villages 1,140,000 km of local roads 45,000 km of main roads
Citizens: 141.9 m
Cars: 33.8 m
Trucks: 5.3 m
Buses: 0.9 m
Russia is the second largest market in Europe... and it demonstrates huge potential for further growth!
© 2011 AutoLocator, Moscow
Automotive market: Statistics
April continued to show growth on the market of new cars and light commercial vehicles in Russia
‣ Among the top 10 bestselling models so far, nine are locally produced.
‣ In comparison to the same period in 2010, January to April 2011 saw the sales of new cars and light commercial vehicles in Russia increase by 64%. Car sales exceeded those within the same period in 2010 by 295,646 units, according to the AEB Automobile Manufacturers Committee (AEB AMC).
‣ Car sales in April 2011 exceeded those in April 2010 by 42% or 70,146 units. ‣ Sales Forecast 2011 – 2.35 mln.
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67,013
162,596
119,880
221,224
0
50,000
100,000
150,000
200,000
250,000
Sales of new cars 25 best sold models
Source: Association of European Businesses
The amount of stolen cars in Russia has increased to even greater degree in direct proportion to Sales Growth.
© 2011 AutoLocator, Moscow
Car theft statistics
In Moscow an estimated fifty cars were stolen per day, with the estimated yearly total for Russia between 100,000 and 150,000. Analyzing the Theft statistics and comparing it with year 2010, it is obvious that car theft is in growth. In accordance with the media statement, crisis in Russia is over , which generated negative theft statistics in Moscow and Moscow region in year 2011. Number of stolen cars increased. Analytics are explaining that by the increasing demand for new and used cars in the market. In Q1,Q2 in year 2011 in Moscow and Moscow region, stolen vehicles: Toyota - 574, VW - 372 , Lexus - 115, BMW - 327 , Mercedes - 245, Opel - 62, Audi - 251, Nissan - 190 ,Toyota Land Cruiser - 102 , Mitsubishi Pajero - 30 , BMW Х3 и X5 – 50 and local brands LADA - 1587 , GAZ - 132. Within the increasing demand there is an appropriateness for the “Japanese”, which is equipped with very basic security systems (both alarm and immobilizer).
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# Model Jan - June 2010 Jan - June 2011 %1 Toyta Camry 128 230 80%2 VW Passat 115 225 96%3 BMW 5 series 93 164 76%4 Chevrolet Niva 67 111 66%5 Toyota Avensis 56 128 129%6 Lexus (all models) 51 115 125%7 Nissan Primera 46 54 17%8 Nissan Almera 44 55 25%9 Mazda 6 42 38 -10%
10 Toyota Land Cruiser 40 84 110%11 Mercedes Benz E-class 39 54 38%12 Toyota Corolla 38 58 53%
0 200 400 600 800 1000 1200 1400 1600
Opel Lexus
GAZ Nissan
Mercedes Audi
BMW VW
Toyota AvtoVAZ
Car thefts by brand Jan - June 2010
© 2011 AutoLocator, Moscow
Situation on Russian roads
By the statement of the Russian State Traffic Inspection, overall automotive fleet has increased by 4% in year ’10 and that is notwithstanding with the financial crisis and the drop in automotive sales. Daily, almost 350 vehicles is newly registered in Moscow. Fleet increased by 12% in the Moscow region. Fleet increase also drives the increase in crash accidents, as low driving culture is worsening already tensed situation. Road accident statistics is not good at all; in December 2009 in only Moscow accidents registered from 350 to 400 daily. Overall accidents in year 2009 – 16 000 in Moscow and more than 200 000 in whole Russia resulting in 26 000 fatalities.
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© 2011 AutoLocator, Moscow
Situation on Russian roads:
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-
10,000
20,000
30,000
40,000
2006 2007 2008 2009
Number of cars (thousands)
Cars Trucks Buses
Source: Rosstat
Growing Number of Cars Low Safety
159 169 178 195 214
0
50
100
150
200
250
2005 2006 2007 2008 2009
Cars per 1,000 people
0.142 0.137 0.128 0.117
0
0.05
0.1
0.15
0.2
2007 2008 2009 6 months 2010
Fatalities / Number of accidents &
56% 41%
3% Structure of road accident fatalities
Death before arrival at hospital
Death in hospital
Instantaneous death in road accident
Source: Health and Social Development Ministry
For comparison: this ratio is 0.01 in Germany
“Golden Hour”
© 2011 AutoLocator, Moscow
Road Safety in Russia vs Other Countries
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vs Russia 14%
Number of deaths per 100 injured in road accidents in different countries
© 2011 AutoLocator, Moscow
Decision making motivation while buying an SVR System*
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* - AutoLocator’s Consumer Research (1200 respondents)
Key motivating factor for installing the Telematics SVR System:
1. Property and life protection needs 2. Insurance policy discount
16%
25%
61%
66%
No motivating factors
Extended guarantee
Discount for new equipment
Subscriber's fee discount
Key motivation factors for purchasing an SVR System Key factors to extend subscription
319
307
82
645
1204
472
410
132
193
728
800
1300
678
Equipment costs and Subscribers fee
Manager's advice
Friend's advice
Insurance policy discount
Property and life protection needs
signi!cant importance moderate importance low importance
© 2011 AutoLocator, Moscow
TELEMATICS INDUSTRY in AFTERMARKET
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© 2011 AutoLocator, Moscow
Key Players in telematics business in Russia
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35000, 23%
55000, 36%
40000, 27%
21000, 14%
Active subscribers (SVR)
Cobra
Caesar Satellite
AutoLocator
Other players
We estimate the current SVR market approximately within 150 000 running active units. Key subscribers for the SVR services are the owners of 40 000 USD and higher price cars.
85% of the subscribers are located in Moscow and St. Petersburg. Regional sales still insignificant yet. Most well regionally presented companies are AUTOLOCATOR and Cesar Satellite. However, AUTOLOCATOR is originally focused on Moscow market as long as it allows to keep the highest ARPU among all competitors.
“AUTOLOCATOR” is providing services for 40 000 active subscribers at the moment, Cesar Satellite – 55 000. The rest is distributed between small players like Arkan , Echelon and other). So, AUTOLOCATOR controls 27% of the market if we estimate AUTOLOCATOR’s share in amount of active subscribers. But, if estimate market share in revenue, AUTOLOCATOR’s share is 34%.
We see positive dynamics within the SVR market and serious future growth due to affordability of new products and services, which would have more value for the consumer, like AutoLocator Assistant (SVR + E-Call and B-Call + Infotainment).
12,250 18%
27,500 39%
24,000 34%
6300, 9%
Revenue 2010 (thousands dollars)
Cobra
Caesar Satellite
AutoLocator
Other players
© 2011 AutoLocator, Moscow
Current SVR Business Model
Current sales model is based on distribution of the telematics units through automotive dealerships. Service Providers are purchasing the units from the manufacturers and then supply the dealers . The Dealer is selling and installing the units when the consumer purchasing the car. It is obvious that current model generates high retail price. Therefore, this kind of services is affordable only for the owners of expensive cars.
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Producer
Dealer
Subscriber
1
2 3
4
Insurance companies
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1. Units purchasing
2. Unit sales to Auto Dealer
3. Unit Sales and Installation to the consumer
4. Tracking services. After sales.
5. Insurance discounts
SVR systems in cars could at risk of being stolen is almost obligatory by leading insurance companies. Most of the insurance companies are providing reasonable discounts while the SVR system is installed. Insurance companies sponsoring Telematics SVR, stimulating growth in the industry.
© 2011 AutoLocator, Moscow
Pricing
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67,000 65,000
48,000
9,300 7,000
7,000
18,500 15,000
12,000
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
AutoLocator Caesar Satellite Cobra Connex
Average service payment per year
Installation cost
Equipment - Average retail price RUB The cost of equipment and service payment remain too high what makes it affordable only for the owners of luxury cars. Price range: $ 1000 - $ 4000
© 2011 AutoLocator, Moscow
Insurance in Telematics
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TOP 5 Russian Insurance companies
20% 40% 60% 80% Insurance Policy Discounts (Theft Risk)
• 1 protection outline • No sensors • Wired relay control
• 1 protection outline • Volume sensor • Tow sensor • 2 types of relay control
• 2 protection outline • Volume sensor • Tow sensor • 2 types of relay control
• 2 communication channels • Volume sensor • Tow sensor • 2 types of relay control • Additional Mechanical protection
(hood lock, gearbox lock)
+ ADDITIONAL 5% discount for Damage Risk in case of providing the insurance company with the 3D accelerometer reports ( drivers behavior, crash analysis, etc.)
AUTOLOCATOR is in partnership with more than 30 leading Insurance Companies offering Special Deals.
© 2011 AutoLocator, Moscow
ERA-GLONASS
"Emergency Response to Accidents“. This system will provide location services for emergency calls, similar to Enhanced 9-1-1, E112 and eCall.
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© 2011 AutoLocator, Moscow
ERA-GLONASS Infrastructure*
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• Moscow
• Saint-Petersburg
• Kaluga • Stary Oskol
• Saratov • Krasnodar • Volgograd • Ufa
• Khabarovsk • Barnaul
• Novosibirsk
• Krasnoyarsk
• Arkhangelsk
Geographical distribution of the ERA GLONASS infrastructure: ‣ Moscow: Federal Navigation Information Center (FNIC); ‣ 15 Regional Navigation Information Centers (RNIC); ‣ 83 service centers for technical support; ‣ Maximum coverage with cellular networks (based on MVNO – mobile virtual network operator); ‣ High-precision positioning network. To date: ‣ 70 regional dispatch centers deployed (October 2010); ‣ System architecture and functionality developed; ‣ MVNO license and communication network code 55 obtained, numbering range (940 - 949) secured - 100 million numbers; ‣ Two pilot projects in progress (in the Kaluga and Ryazan regions).
* - prepared by NIS-GLONASS
© 2011 AutoLocator, Moscow
ERA GLONASS: System design milestones and activities*
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2010 Feed Start up
2011 Infrastructure development
2012 Pilot Project
2013 Full-scale Operation
1 • Legislation enabling the creation and operation of ERA-GLONASS System
2 • Design of ERA-GLONASS SAS Infrastructure
3 • Integration with emergency response services
4 • Equipping vehicles with ERA-GLONASS terminals
5 • Development of value-added services based on ERA-GLONASS infrastructure
2013 ERA-GLONASS Full-scale operation Startup
Installation of ERA-GLONASS terminals will be mandatory for vehicle categories M and N as of 2013.
* - prepared by NIS-GLONASS
© 2011 AutoLocator, Moscow
Commercialization is one the most important objectives of ERA-GLONASS .
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Basic services (Emergency Response on Accidents or eCall) will be provided without charge. If an end user would like to have additional services (e.g. PAYD, SVR or infotainment), he will have to:
1. visit an ERA-GLONASS web site. 2. choose one of the certified telematics
service providers. 3. choose the desired services. 4. pay the subscription fee.
© 2011 AutoLocator, Moscow
Architecture of Russian ERA GLONASS*
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* - prepared by NIS-GLONASS
© 2011 AutoLocator, Moscow
ERA-GLONASS system: the basis for integration of navigation information systems*
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Fleet Management Service Providers
Insurance companies Toll Road operators SVR Service
Providers Location-based Service Providers
Location-based Content Providers
ERA-GLONASS Infrastructure
Service Delivery Platform MVNO (Mobile Virtual Network Operator)
Precise Positioning System Data Network
Network of Navigation Information Centers
END USERS * - prepared by NIS-GLONASS
© 2011 AutoLocator, Moscow
First results of cooperation
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AUTOLOCATOR becomes one of the few companies who was recognized by NIS-GLONASS as our equipment meets all necessary technical requirements. Information about the vehicles operating in Sochi for the purpose of Olympics objects construction is transmitted to Transport Management of Olympic Games and NIS-GLONASS. This allows our clients to get all necessary permissions easily.
3d Qtr. 2011 – a joint pilot project is to start with NIS-GLONASS. The main object is to test: • basic services (Emergency Response on Accidents or eCall) • additional services (Infotainment, SVR, Fleet Management
and etc.)
1
2
© 2011 AutoLocator, Moscow
Support of Value-Added Services by Different Versions of ERA-GLONASS Terminal*
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• MSD transmission mechanism • ETSI in-band modem (primary method) • SMS (secondary method); • SMS can be used at the request of the PSAP operator (if voice call was established, but data could not
be transmitted in-band) or initiated by IVS if voice call could not be established; • Testing mode for user-initiated IVS functional test; • OTA configuration; • OTA firmware update; • Optional functional requirements to support value-added services.
ERA-GLONASS In-vehicle system requirements*
* - prepared by NIS-GLONASS
© 2011 AutoLocator, Moscow
ERA-GLONASS Project Status* ‣ Draft amendments to Technical Regulations on Vehicle Safety were published and passed public discussion. Presently, the amendments are undergoing the state
approval process. ‣ Draft IVS requirements were circulated and discussed with project stakeholders. ‣ ERA-GLONASS infrastructure design is in progress. Infrastructure will be available to support trials from the beginning of 2011, full-scale pilot projects from the
beginning of 2012 and be ready for production by the end of 2012. ‣ NIS was licensed as the Mobile Virtual Network Operator (MVNO). ‣ The drafting of regulations for 112-call prioritization is currently in progress. ‣ Pilot projects were launched in two regions (Kaluga and Ryazan). Two more regions (the Moscow region and the Leningrad region) will join the pilot program this year. ‣ The pilot program in the Leningrad region is being designed to support the cross-border ERA-GLONASS / eCall joint pilot project with Finland.
Amendments to regulations on Vehicle Safety* ‣ Amendments are proposed to come into effect on January 1, 2013 for all vehicles manufactured after this date. ‣ Retrofit IVS configuration is allowed, as well as OEM preinstalled configuration. ‣ GLONASS should be used to locate the vehicle either alone or in combination with other systems (GPS and/or GALILEO). ‣ IVS should enable automatic and manual emergency call with MSD transmission. ‣ The regulations contain provisions for recording and transmission of the acceleration profile before, and in the course of, the accident. ‣ The IVS system shall report its status at preconfigured time intervals as part of its operability control. If it identifies an internal failure, the system reports such a failure
immediately. ‣ It should be possible to initiate IVS test from the vehicle at a service center or in course of technical inspection.
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* - prepared by NIS-GLONASS
© 2011 AutoLocator, Moscow
RESUME
Russian automotive market demonstrates significant growth
Growing consumer’s wealth, leads to negative stolen vehicle statistics.
Every Russian who purchased a car is ended up in risk group ( car theft / crash accident). Russian consumers feel hunger for SAFE being and property protection.
Insurance companies are sponsoring the Telematics SVR industry with the discounts for the insurance, which keeps strong demand for the SVR Systems.
Russian Government is forcing the development of GLONASS project. We are sure that the demand will grow rapidly with the new State Technical Regulations for Automotive transport .
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1 Fact One
2 Fact Two
3 Fact Three
4 Fact Four
5 Fact Five
© 2011 AutoLocator, Moscow
Industry forecast
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42 17 30 38
66
290
435
860
0
100
200
300
400
500
600
700
800
900
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
2008 2009 2010 2011f 2012f 2013f 2014f 2015f
Car Sales (millons) SVR systems Sales (thousands)
1. Since 2011 significant sales growth of SVR systems with subscriber’s fee will take place.
2. When ERA-GLONASS full-scale project is launched, penetration of SVR systems will reach 100%.
© 2011 AutoLocator, Moscow
Contact Us 107140, Moscow, Russia, Verhnyaya Krasnosel’skaya str. 3 b. 1 Tel. +7 (495) 974 25 25 www.autolocator.ru