How OEM telematics fleet solutions increase ROI?

The main aim of almost every business is to increase the RATE ON INVESTMENT and telematics fleet solutions are helping fleet owners in increasing the efficiency by ensuring the proper utilisation of their assets.

OEM telematics fleet solutions are now installed in almost every new vehicle, on the other hand it also provide some advanced features such as remote diagnostics and GPS tracking. To start we need to answer the question,”What are OEM telematics?” and ” How OEM telematics helps in increasing ROI?“.

What are OEM telematics?

OEM telematics stands for Original Equipment Manufacturers which are further categorized into 2 areas:-

Hardware – In this the telematics are already installed by the OEM in vehicles.


Software – It retrieve all the signal data that the vehicle is generating to the telematics hardware.

In order to maximise the ROI you will need a systematic approach.

What is ROI or return on investment?

ROI is used as a tool to evaluate the performance of an organisation.

ROI= It’s a ratio between Revenue generated and Cost of investment.


(Revenue generated- cost of investment)(cost of investment) ×100

 [Revenue generated refers to the net income or profit generated in the year and Cost of investment is total amount you invested]


NOTE: Some insights that helps to increase its ROI are :-


Increase in fuel saving

OEM telematics fleet solutions helps fleet owners in increasing fuel saving by decreasing the average fuel cost and encouraging the behaviour change of driver, i.e. reckless driving, rapid acceleration, hard brakes.

Increase in efficiency

OEM telematics fleet solutions help drivers by en route then the idle route, so that package delivers on time (improvement in customer services) and will result in reducing payroll cost.

Decrease in accident

OEM telematics fleet solutions significantly helps in improving drivers behaviour from driving recklessly and as reported by the organisations there is an average decrease in accident cost which associates less losses.

OEM telematics fleet solutions also ensures some direct and indirect gains in investment :-

Maintenance cost

OEM telematics fleet solutions help in cutting maintenance and operational cost by cutting unscheduled downtime, vehicle breakdown.

Enhanced routing

OEM telematics helps drivers en route with idle routes.

OEM telematics prioritize customer services

Early adopters of OEM telematics are at a competitive stage and to meet customers expectations that ensure delivery on time.

Helps cut in labour cost

OEM telematics fleet solutions significantly decrease the labour cost

Improving drivers behaviour

OEM telematics fleet solutions  results in reducing accident cost or fines and offering insurance premiums.

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