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December 9, 2011

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Telematics income set to expand in China

THE revenue of China's telematics industry will grow rapidly over the next few years because of more smart cars on the roads and faster speed of the telecommunications network, and Shanghai is expected to play a "leading" role in its development, officials told a telematics forum in the city yesterday.

Some telematics technologies will also be used in high-speed railway networks in China, experts said.

The revenue of China's telematics industry soared more than 20 percent annually to 220 billion yuan (US$34.37 billion) in the first three quarters, according to Shao Zhiqing, deputy director of the Shanghai Municipal Commission of Economy and Information Technology.

"Shanghai will play a leading role to develop the telematics industry nationwide. The city has a high-level science research level and a strong automotive industry favorable for telematics to develop," Shao said at the Telematics China 2011 forum.

Telematics refers to electronic control, communications and navigation systems in vehicles. This technology allows drivers to send, receive and store information via telecom devices while also enabling users to remotely control objects. Telematics, one of Shanghai's "strategic industries," also includes Global Positioning System technology integrated with computers and mobile communications technology.

Telematics, widely used in vehicles, will also be adopted in control and security systems of high-speed railways, said Fu Yuwu, general secretary of the Society of Automotive Engineers in China.

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