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

China: The OEM Telematics Landscape

Automotive Multimedia & Communications Service

Ying Kit Tang, YKTang@

Viewpoint Snapshot

Despite 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 2013

1Executive Summary

In 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 ways

a clean slate. Government support and growing consumer demand for services such as

navigation 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 would

never be legal in North America or Europe, there is no legislation preventing its use in

China.