中国车机厂商车联网版图StrategyAnalytics报告ChinaTheOEMTelematicsLandscape

China: The OEM Telematics LandscapeAutomotive Multimedia & Communications ServiceYing Kit Tang, YKTang@Viewpoint SnapshotDespite slowing growth in 2011 and 2012, automotive sales in China still far surpass those found in most other markets, including markets in other developing nations. While Toyota’s G-Book was an early leader in telematics solutions, OnStar has since taken the lead in terms of users. Many OEM’s have also deployed telematics services, many of which are distinctly different from solutions outside China. This report examines the telematics market in China from the perspectives of the OEMs, independent Telematics Service Providers, and Wireless Carriers.August 20131Executive SummaryIn order to achieve target growth goals of Gross Domestic Product of between 8% and 10%, two sectors are immensely important to China: construction and automotive. This has resulted in an incredible building phase of road networks and infrastructure. China has quickly risen to become the largest car market in the world. While many marvel at this rapid industrialization, it has also resulted in many problems such as road congestion, car crime, personal safety issues and damage to the environment. As a result, consumers and car makers are turning to market solutions such as telematics to help solve these issues.With eCall implementation delays slowing telematics rollout in Europe, OEMs have targeted China as the next big market for the expansion of telematics services. China is in many waysa clean slate. Government support and growing consumer demand for services such asnavigation and road traffic information coupled with rapid vehicle sales growth make China an important market. In October 2010, the Chinese government unveiled the “Internet of Things (IOT)” project, which emphasizes development of connected vehicles. The government plans to invest tens of billions of US dollars in this project. The Chinese government estimates that, by 2020, there will be 200 million connected cars in China.Furthermore, Non-Chinese OEMs are battling to establish greater market share in a market that shows signs of further growth. Non-Chinese OEMs, through joint ventures, have a pre-emptive advantage by introducing mature telematics solutions which have been widely-used in Japan, US and European markets. On the other hand, these mature systems also restrict these suppliers’ innovation:Solutions such as GM OnStar and Toyota G-Book utilize a 2.5G-embedded modem solution focused on safety and security.o This solution is very Western in nature and has not been customized for the Chinese consumer.In contrast, domestic OEM's in China are developing systems from scratch, which is giving them the opportunity to learn from global experiences and to take advantage of up-to-date technologies.These solutions often take into account the specific conditions drivers face in China, one of them being stuck in traffic.Solutions such as SAIC's Roewe InkaNet is focusing on embedded 3G-type Internet access. While this unrestricted access to the Internet in an automobile dashboard wouldnever be legal in North America or Europe, there is no legislation preventing its use inChina.o Furthermore, traffic in major cities tends to be so bad this is less dangerous than external observers may perceive.While Tier 1 system vendors have a tentative attitude toward China's OEM Telematics market, digital map suppliers such as NavInfo and AutoNavi are very active and are seeking to become independent telematics service providers (TSP's). China telecom operators have been considering the OEM telematics market as a strategic value-added service in their scope, but their current roles are still mainly as communication-data-flow channel providers.Thus far, participants are facing significant barriers such as the lack of quality of traffic information, map data and POI's and the lack of user awareness of these services. In addition, market developments are being held back by the lack of usability and user friendliness of interfaces as well as the high cost of mobile communication data, lack of standards, industry fragmentation, inadequate business models, and the long development cycles typical for the automotive industry.Overall, OEM telematics services have been met with limited success up until now in the China market. Adoption rate is still very low, since vehicle manufacturers have announced figures in the range of tens or hundreds of thousands of systems. Currently most telematics systems are offered for free for one or more years, and renewal rates remain a major uncertainty – though some preliminary indications are positive.Telematics technology will become a standard feature on cars, which will allow vehicle manufacturers to reduce costs and enhance service and quality through remote diagnostics, maintenance, and software upgrades. Consumers will be able to subscribe to a wide range of optional safety and infotainment-type telematics services on a monthly fee or pay-per-use basis. It will be up to the TSP's and content providers to offer and deliver compelling sets of services to connected vehicles.Exhibit 1-1 OEMs: 2013 Sales & year on year GrowthExhibit 1-2 OEMs Telematics Services: OverviewExhibit 1-3 OEMs Telematics Services: Suppliers*For the Chevrolet Epica, GM offers the e-Motion telematics service. The TSP for e-Motion is Continental, mobile services by China Telecom; traffic information by AutoNavi, and hardware by Continental.Exhibit 1-4 OEMs Telematics Services: FeaturesSource: Strategy Analytics。