1. © Copyright 2002 Frost & Sullivan. All rights reserved. The European Remote Vehicle Diagnostics Systems Market Interactive Analyst Briefing 7 th November 2002 Anil Valsan

2. © Copyright 2002 Frost & Sullivan. All rights reserved. Agenda Remote Diagnostics Defined Market Overview Market Trends Key Aspects of Remote Diagnostics Strategic Impact on Key Participants Service Evolution Key Demand Drivers and Restraints Market Size and Forecasts Report Highlights Questions

3. © Copyright 2002 Frost & Sullivan. All rights reserved. Remote Diagnostics Defined The ability to access the vehicles performance parameters and trouble codes in case of malfunction using a wireless network, and provide necessary support services. Data Centre Mobile Services Vehicle Manufacturer Service Centre Customer Service Centre Data Link WirelessWiredPhysicalType of Link:

4. © Copyright 2002 Frost & Sullivan. All rights reserved. Market Overview Overall market expected to grow by 39.5 percent during forecast period. Number of units installed is expected to be 5.4 million by 2009. Market expected to be driven by vehicle manufacturers. Significant opportunities for a number of value chain participants.

5. © Copyright 2002 Frost & Sullivan. All rights reserved. Market and Technology Trends Market Trends Revision of Competition Laws by European Commission Issues relating to personal privacy New model introduction Car culture in the European market Technology Trends Initiatives for standardisation of architecture such as AMI-C, OSGi, ERTICO Key emerging technologies such as –3G –Embedded systems –On-board Vs off-board systems

6. © Copyright 2002 Frost & Sullivan. All rights reserved. Benefits of Remote Diagnostics Reduction in warranty costs Quality aftersales service support to customers Relationship with subsequent vehicle owners Mobile asset management

7. © Copyright 2002 Frost & Sullivan. All rights reserved. Strategic Impact on Key Participants Vehicle manufacturers Aftersales service market Diagnostics equipment suppliers Telematics service providers Tier One suppliers Software companies

8. © Copyright 2002 Frost & Sullivan. All rights reserved. Service Evolution Remote Diagnostics Passive Proactive Diagnostics Periodic Continuous Reactive Diagnostics Vehicle Initiated Fault Notification Prognostics Preventive Maintenance

9. © Copyright 2002 Frost & Sullivan. All rights reserved. Key Demand Drivers and Restraints Drivers Reduction of warranty costs Data for new product development Benefits to vehicle owners New competition laws in European Union Fleet management benefits Restraints Absence of a business model High cost of introduction Confidentiality of vehicle performance data Lack of perceived needs and benefits by consumers Threat of obsolescence of constituent technologies

10. © Copyright 2002 Frost & Sullivan. All rights reserved. Market Size and Forecasts Passenger Cars RVD for passenger vehicles to grow by 38.9 percent between 2002 and 2009 to touch 1.8 billion Number of vehicle manufacturers expected to introduce between 2003 and 2005 To be initially introduced in the upper-medium, executive and luxury segments Remote diagnostics to be packaged along with telematics services. Main countries expected to see introduction include Germany, United Kingdom, France, Sweden and Italy

11. © Copyright 2002 Frost & Sullivan. All rights reserved. Market Size and Forecasts (Contd…) Commercial Vehicles RVD for commercial vehicles to grow by 59.5 percent between 2002 and 2009 to touch 93.4 million To be initially introduced in the higher tonnage vehicles Remote diagnostics to be packaged along with fleet management applications Main countries expected to see introduction include Germany, France, the UK, Netherlands, and the Scandinavian countries

12. © Copyright 2002 Frost & Sullivan. All rights reserved. Report Highlights Based on extensive primary and secondary research Detailed roadmap and product life cycle analysis A cost benefit analysis model for evaluating the business feasibility Forecasts for units, prices and revenues for passenger and commercial vehicles Includes forecasts for penetration levels for different vehicle manufacturers Recommendations for key industry participants and analysis of implications for key industry participants Detailed profiles and initiatives of prominent value chain participants

13. © Copyright 2002 Frost & Sullivan. All rights reserved. Questions? For further information please contact us Call: +44 (0) 20 7343 8383 Email: enquiries@frost.com