Car on the street

What is a Telematics system?

18. Oct 2022 | By Malena Gärtner

If you manage a fleet of vehicles, you can't do without telematics systems nowadays. The aim is to plan and optimize vehicle operations better. In the following, we would like to show you what functions telematics systems have, what data is collected and how you can equip your fleet with telematics units.

Definition telematics system

The term telematics system comes from the French word télématique, which means the fusion of telecommunications with information technology. Telematics is carried out by means of technical devices that can send, receive and store data.

In vehicles, data processing systems are connected to a telecommunication system for this purpose. The collection and evaluation of vehicle data is possible for both cars and trucks. In order to be able to collect the vehicle data, a telematics unit must be installed in the vehicle. The telematics unit is referred to as an Onboard - Unit (OBU) or an IOT - Device.

OBD Plug
OBD Plug

Functions of a telematics system

What can a telematics system do?

By using a telematics unit with a GPS tracker, a lot of information about the vehicle is collected, such as:

  • The location of the vehicle
  • The travel time
  • The speed and acceleration behavior
  • The driving, braking and cornering behavior
  • The fuel consumption

The telematics system for cars and trucks enables various analyses to be carried out from the data collected and adjustments to be made in fleet management.

What are the areas of application?

What is the goal of the data collection?

The primary goal for the use of telematics system cars and trucks is to make the use of vehicles cost-saving. The use of drivers and vehicles should be more optimally controlled, planned, monitored and managed by the data. Thus, a good telematics system, depending on the size of the fleet, can have a great economic significance for a company.

By using GPS positioning, the fleet manager receives real-time information about the location of his vehicles and the travel time. Based on this, route planning can be optimized so that traffic jams can be avoided and downtimes reduced. Furthermore, the route planning system makes it much easier to identify which delivery points are close together or which stations can be visited on the way back to avoid empty runs. In addition, it is possible to communicate directly with the driver via a telematics unit and, for example, make route changes. A more efficient route also leads to a reduction in fuel consumption.

Furthermore, the data can be used to schedule drivers more efficiently, which ensures a smooth process for the company and increases customer satisfaction through on-time deliveries or customers can be informed about delivery delays in a timely manner. In addition, the company receives information about driving behavior, which is also useful for reducing insurance premiums.

The telematics system also helps to keep important appointments. For example, the software can remind drivers of inspections or tire changes and coordinate workshop appointments accordingly. Telematics systems also help in the legal area. By recording driving times, driving and rest periods can be monitored and the data transferred to a digital driver's logbook.

Geo & Tracking
Geo & Tracking

How can a telematics system support in carsharing?

Special car sharing systems

Telematics systems have also become indispensable in the car sharing sector. The system enables the fleet manager to track, for example, where his vehicles are at the moment, what the fuel level / charging status is for electric cars, or whether all doors and windows are closed. Customers and car sharing companies no longer even have to meet physically. The vehicle can be unlocked via an app on the smartphone using a digital car key. For customers who do not have a smartphone, an RFID solution is also offered so that the car can be opened using a card. Likewise, the fuel cards can be managed and monitored so that they do not get lost.

How do I get a telematics unit?

The solution from fleetster

If you are interested in a carsharing kit from fleetster, the installation by fleetster is done as follows. First, we check if our carsharing hardware is compatible with your vehicles. Then we order the telematics system as well as possible additional equipment like RFID readers. After the installation, the last step is the connection of the vehicle with the fleetster software.

Car and fleetster kit
Car and fleetster kit


The use of telematics systems in company vehicles is essential today in order to still be competitive. In times where traffic is increasing more and more and the costs for energy are rising sharply, an optimized use of vehicles is an important aspect of profitability for companies. Therefore, take advantage of the offers of fleetster. We will be happy to advise you on how you can simplify and optimize the management and control of your fleet by using our telematics system.