OEM Telematics: Pros and Cons for 2025

If you are overseeing corporate car pools and utility vehicles, understanding the advantages of Original Equipment Manufacturer (OEM) telematics is essential for making informed decisions about fleet technology. 

At AZOWO, we’re a leading provider of connected mobility solutions, offering a platform that seamlessly integrates with OEM telematics systems. It’s a topic we think about a lot, which is why we’ve put together this comprehensive guide exploring the pros and cons of OEM telematics, and comparing them to aftermarket solutions to highlight the importance of telematics in modern fleet management.

OEM telematics refers to telematics systems that are built into vehicles by the original equipment manufacturers. These integrated systems collect and transmit data about vehicle performance, location, and usage directly from the vehicle's onboard systems. About 75% of all new cars sold in 2023 were equipped with OEM-embedded telematics. Telematics adoption is a critical part of fleet management best practices. 

While aftermarket telematics devices can be added to vehicles post-purchase, OEM telematics are factory-fitted solutions that come as part of the vehicle's original design. This integration offers several advantages over aftermarket alternatives.

OEM telematics systems are deeply integrated with vehicle systems, providing access to a wider range of data points and more accurate information. This integration allows for deeper insights into vehicle performance and driver behaviour.

It’s important that the fleet management platform you use is able to analyse this data and provide insights to optimise operations. Without these capabilities, you’ll functionally end up drowning in data that doesn’t help with decision-making.  

AZOWO's platform leverages extensive OEM integrations to provide fleet managers with comprehensive, high-quality data across various vehicle brands, enabling more informed decision-making.

As factory-fitted solutions, OEM telematics systems are covered by the vehicle's warranty and are fully compliant with manufacturer specifications. This ensures greater reliability and reduces concerns about warranty violations that can occur with aftermarket installations.

OEM telematics systems benefit from the vehicle manufacturer's robust security measures, offering enhanced protection against data breaches and cyber threats. This is particularly crucial as vehicles become increasingly connected and data privacy concerns grow.

Unlike aftermarket solutions, OEM telematics eliminates the need for additional hardware installations. This saves time and costs associated with installing and maintaining separate telematics devices, particularly in large fleets.

OEM telematics are designed to work harmoniously with the vehicle's existing systems, providing more accurate and comprehensive data. This integration can offer insights into complex vehicle functions that may not be accessible to aftermarket devices.

Telematics provide valuable data on vehicle location, speed, fuel usage, and more, allowing fleet managers to optimise routes, reduce idle time, and improve overall operational efficiency.

The efficiency gains from telematics often translate into significant cost savings. These can include reduced fuel consumption, lower maintenance costs through predictive maintenance, and potential fleet size reduction through more efficient vehicle allocation.

OEM telematics data provides the context you need to adopt a proactive approach to vehicle maintenance. It’s possible to schedule service checks or part replacements based on an accurate understanding of vehicle usage and damage reports. This enables even more cost savings, while also improving the safety and reliability of your vehicles.

Telematics systems provide real-time data, enabling fleet managers to make immediate decisions about vehicle dispatching, fleet size, and maintenance needs. This agility can lead to improved access to vehicles and employee satisfaction, while also reducing maintenance costs.

By optimising routes and improving driving behaviour, telematics can help reduce fuel consumption and emissions, supporting sustainability goals and potentially reducing carbon-related costs.

For fleets with vehicles from multiple manufacturers, managing different OEM telematics systems can be challenging. Not all fleet management systems are compatible with every OEM within your fleet. However, this can be mitigated by using a unified fleet management platform that integrates with multiple OEM systems.

OEM telematics systems can generate vast amounts of data, which can be overwhelming without proper analysis tools. It's crucial to have a robust fleet management solution that can process this data and present actionable insights.

The comprehensive nature of OEM telematics data can raise privacy concerns among drivers. It's important to implement clear policies on data usage and to educate drivers about the benefits of telematics for both the company and their own safety.

To fully leverage OEM telematics data, integrate it with a robust fleet management platform. This allows for centralised data analysis, reporting, and decision-making across your entire fleet.

Invest in analytics tools that can transform raw telematics data into meaningful insights. Look for solutions that offer customisable dashboards and reports tailored to your specific fleet management needs.

Introducing or expanding the use of telematics requires buy-in from all stakeholders. Develop a comprehensive change management strategy that includes driver education, clear communication of benefits, and ongoing support.

Telematics technology and capabilities are constantly evolving. Regularly review your telematics strategy and look for new ways to leverage the data to improve fleet performance and reduce costs.

OEM telematics offer significant advantages for fleet managers seeking to optimise their operations. The superior data quality, enhanced reliability, and seamless integration of OEM telematics provide a solid foundation for data-driven fleet management, and adoption of critical fleet management industry trends. 

While there are potential challenges, such as managing mixed fleets and handling large volumes of data, these can be effectively addressed with the right fleet management platform. AZOWO's connected mobility solution is designed to complement OEM telematics systems, offering extensive integrations across vehicle brands and powerful analytics tools to turn telematics data into actionable insights.

By leveraging OEM telematics in conjunction with a comprehensive fleet management platform like AZOWO, fleet managers can drive significant improvements in efficiency, cost savings, safety, and sustainability. As the automotive industry continues to advance towards more connected and autonomous vehicles, the value of OEM telematics will only increase, making it a crucial investment for forward-thinking fleet managers.

Get in touch to learn how our platform can help you maximise the value of your OEM telematics data, providing you with the insights and tools needed to optimise your fleet operations for 2025 and beyond.