Pointer Telocation and Pricol sign a Letter of Intent (LOI) to form a Joint Venture for Telematics Solutions in India and South East Asia

Rosh HaAyin (Israel) and Coimbatore (India) December 12, 2018. Pointer Telocation Ltd. (Nasdaq: PNTR; TASE: PNTR) – a leading developer, manufacturer and operator of Mobile Resource Management (MRM) and Pricol Limited (NSE: PRICOLLTD; BSE: 540293), a leading manufacturer of automotive components for the global automotive market announced today that they intend to enter into a joint venture to provide advanced telematics and IoT solutions in India and other countries in South East Asia.

By way of background, under India's Ministry of Road Transport and Highway’s (MoRTH) AIS 140 standard for Intelligent Transport Systems, Vehicle Tracking Systems will become a mandatory feature for all public transport vehicles and commercial vehicles requiring national permit beginning January 2019. This Joint Venture will further enable Pointer and Pricol to be the leaders in the Indian telematics market.

Through the joint venture, Pointer and Pricol will provide a variety of telematics solutions to the customers for both the OEM and the aftermarket segments. Pricol will bring its robust manufacturing capabilities as well as strong sales and distribution network in OEM and aftermarket segment. Pointer will provide its capabilities in design and development of telematics solutions, and its strong sales network of telematics service providers, system integrators and mobile operators. Pointer will control 51% interest and Pricol will control 49% interest in this proposed joint venture.

Mr. Vikram Mohan, Managing Director, Pricol, commented, “With this partnership, we will be the one stop provider for telematics solutions to our customers.  Pricol is one of the leading telematics hardware supplier for OEMs in India with an installed base of more than 100,000 vehicles. Pointer’s cutting edge technology, large R&D workforce, and global presence combined with Pricol’s manufacturing excellence will enable us to be a leading player in the Asian market to provide state-of-the-art telematics solutions.”

Mr. David Mahlab, Chief Executive Officer of Pointer Telocation, commented, “Through a strong partner network Pointer has successfully deployed about 150,000 telematic units in the Indian market and over 3 million units across the globe. This joint venture will help both companies increase our foothold in both the OEM segment and the aftermarket utilizing Pricol’s capabilities and Pointer’s success thus far such as in the Nissan India Connected Car project.”

You can find the complete release here