Luiz Munhoz, MiX Telematics: 30% growth in Latin America
Kicking off operations in Brazil around six years ago, one of the regions it is targeting for growth right now is Latin America and, according to regional managing director Luiz Munhoz, the company is hoping to double its business in Latin America within four years time.
First of all, how many subscribers do you have in Latin America right now and what are you expecting in the coming years?
Munhoz: Today, we have surpassed 40,000 vehicles connected with premium telemetry in commercial vehicle fleets (including trucks and buses) in Latin America. The number of subscribers has been growing by approximately 30% year-over-year and we are expecting this trend to continue over the next few years.
In which countries throughout Latin America would MiX like to expand?
Munhoz: Brazil, which accounts for 57% of GDP in South America and 70% of our current fleet, was the initial growth focus of MiX, but we are now seeking expansion in countries such as Chile, Uruguay, Argentina, Ecuador, Peru and Colombia. We actually have large global accounts in these countries already.
How much does bad driving affect fleet management and what can be done about it?
Munhoz: Acccident rates are very alarming in Latin America so one of our main goals in the region is to strengthen the use of telematics. Initially, what we do is show our customers how much wrong driver behaviour can be harmful to fleet, and even deadly.
When we show them how much telematics actually supports on-the-job safety and the preservation of lives, we do see a lot of cooperation and this is something that greatly reduces accidents and vehicle breakdowns for our customers.
Vehicle theft is quite high in many Latin American cities. What is MiX Telematics doing to reduce this risk?
Munhoz: Vehicle theft is a serious problem in Brazil and its Latin American neighbors as there are gangs specifically focused on this type of crime. At MiX Telematics, we need to constantly stay ahead of the game so we continuously invest in technologies aimed at making the lives of our customers easier.
For one, we have technology that can guide drivers through safe neighborhoods by making sure they take the correct routes. In the event of a deviation from the planned route, the fleet manager is notified in real time through our software and a proactive action plan can be put into place.
At MiX Telematics, we have high tech solutions with accurate geo-positioning and data transmission which is fed through GSM or satellite communication.
Could you give me an idea of the revenue and profit expected from MiX Telematics in 2019?
Munhoz: We are not authorized to disclose monetary revenue and profit planning for this year. However, we are a listed company (NYSE and JHB) so upcoming results will be public and can be obtained through our website. Like I said before, we have been seeing significant growth of 20-30% in previous years and we are focused on maintaining this trend.
(Mr. Munhoz is also one of the newest members of the Fleet LatAm advisory board)