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Brazil Contran 245 Vehicle Tracking Law Will be Delayed

Wireless Technology Enables Vehicle Tracking

Boston, MA -  October 6, 2011  The Brazilian law requiring GPRS modules in all new vehicles produced in, or imported to, Brazil will again be delayed, according to analysis from the Strategy Analytics Automotive Electronics Service. Strategy Analytics discerns that the Contran 245 mandate enacted by Brazil’s DENATRAN Transportation Ministry will be delayed for an eighth time, based upon a survey of automotive executives who were polled in connection with the recent Telematics Update Brazil and LATAM conference in Sao Paulo, which was sponsored by Telematics Update.  Ninety percent of the senior executives responding to this Strategy Analytics survey said that the January 2012 will not take place until at least June 2012. A formal announcement is expected in late December.

The Contran 245 mandate requires that manufacturers add a GPRS module to vehicles produced in, or imported to, Brazil in order to:
  • Enable vehicle tracking and immobilization intended to reduce vehicle theft; and
  • Improve recovery rates for stolen vehicles.
The recent Strategy Analytics report, “Brazil: The Embrace of Wireless Technologies Transforms the Telematics Market,” includes details of the law and the existing scheduled implantation.

Survey respondents cited need for additional time for the government to complete the creation of its home location registry (HLR) which will be a central database containing the details of each mobile phone subscriber that is authorized to use the GSM core network.  Additionally, car manufacturers had already requested postponement because they still had not placed any equipment orders for GPRS devices.

“The Brazil Contran 245 is changing the way governments, car makers and wireless carriers around the world think about telematics and its potential to resolve traffic, crime and pollution issues,” observed Roger C. Lanctot, Senior Analyst in the Strategy Analytics Global Automotive Practice.  “Contran 245 will be implemented despite the many delays—and both consumers and car makers will benefit.”
 

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Roger Lanctot
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