Vodafone has announced that it will supply an embedded SIM for new Volkswagen and Audi models in Europe, as the automotive sector becomes increasingly important for operators’ M2M ambitions.

The agreement does not start immediately – Vodafone will supply M2M connectivity for new Audi models from 2015

Currently Audi offers a package of services which includes “in-car navigation, communications and infotainment services together with a WLAN hotspot”.

In 2013, the Audi S3 was the company’s first model to integrate a 4G-capable infotainment system, enabling Vodafone subscribers to access its 4G network. The car will be on display at this year’s Vodafone CeBIT stand.

Erik Brenneis, head of Vodafone’s M2M, said: “As a result of this agreement, we will strengthen further our position in the automotive sector – one of the key markets for M2M communication. Our efficient mobile communications networks ensure that the networked car is becoming more and more widespread, including across European national borders”.

One of the factors suggested by Vodafone that might drive user adoption is the planned EU-wide emergency call system – known as eCall – which automatically sends out a SOS in the event of a vehicle accident.

Vodafone already has previous experience with M2M in the automotive sector. Two years ago Vodafone Germany unveiled a five-year deal to supply M2M connectivity for BMW cars sold domestically.

This is not the first time Vodafone has worked with Volkswagen either. In 2012, the mobile operator announced it had been chosen by the car maker to supply mobile services to its workforce of more than 90,000 employees.

In addition to supplying voice and data services to Volkswagen workers, Vodafone also agreed to offer data transfer for business process management in areas such as logistics and production. That agreement is for internal functions as opposed to the latest M2M deal which is focused on customers.