Vehicle technology has evolved by an incredible margin in the past three decades. With the increasing improvement of wireless communication standards, we are now able to implement communicational abilities into vehicles. ‘Vehicle telematics’ refers to all technologies which enable a vehicle to communicate. The communication can be of two types: vehicle-to-vehicle or vehicle-to-infrastructure. The following paper explores this interesting sphere. In particular, someapplications of vehicle telematics have been discussed- a) Infotainment Systems b) Telematics-based Insurance c) Wireless Traffic Management System for Emergency Vehicles. The paper also enlists the advantages of the technology and provides outlook on the impact of the implementation of the same with reference to the Indian automotive scenario. The challenges associated have also been briefly discussed. © Research India Publications.