TACO MobiApps in talks with OEMs to sell vehicle tracking devices

TACO MobiApps Telematics is in talks with commercial vehicle manufacturers to explore the possibility of a deal to fix its tracking devices in commercial vehicles.

TACO MobiApps' tracking device, 'tracko,' has been sold to individual commercial vehicle buyers for about a year. At a press conference, the company's chief executive officer, Praveen Gupta, said that in a year, 'tracko' has been fixed in more than 4,000 trucks and repeat purchases have started.

The talks with vehicle manufacturers is a sign of recognition that the tracking product has had some impact on the market.

The tracking device has stoked interest among two kinds of buyers. Fleet operators who want to keep a check on their trucks crisscrossing highways and the Business Process Outsourcing (BPO) companies who need to transport employees at odd hours.

The core demand, however, comes from fleet operators. Gupta estimated that the market potential for the tracking device is 2.7 million vehicles of the 3.5 million on the road.

The tracking device works by relying on satellites that make mobile phones possible. It is powered by being connected to the vehicle's battery. Using the tracking device, a fleet operator would be able to constantly measure key reference in the vehicles that have the tracking device.

TACO MobiApp officials said that parameters that could be measured are vehicle speed, fuel level and position, among other things.

TACO MobiApp's tracking device has five to six competitors, but their presence is largely confined to select regions, said Gupta.

TACO MobiApps is a part of the Tata AutoComp Sytems (TACO) group. TACO was promoted by the Tata group to engage in the auto component business. TACO holds 58 per cent of the stake in TACO MobiApps, while MobiApps Holdings, Singapore, holds the balance.