Analysing the Chinese telematics market


As Chinese passenger vehicle manufacturers look to bolster adoption of telematics system in 2015, a key finding from the latest report by ResearchinChina is that smartphone integration and 4G LTE technologies have increased their footprint while the user experience has been boosted by IVI (in-vehicle infotainment) and networking functions. Chinese new passenger vehicles equipped with telematics products grew 32.1% year-on-year to 1.8 million units in January-September 2015.

OnStar led the way with a 26% share of the market, as SYNC and Honda Link trailed behind. Changan Automobile was the only self-owned brand that ranked among the top 5 as it rolled out several models equipped with an in-call system, claiming a market share of 7%.

Traditional Chinese third-party telematics enterprises still faced challenges. For instance, companies like PATEO and China TSP are chasing change based on their OEM business while LAUNCH Tech and Carsmart continue to pursue consumer demand in the aftermarket. Mapping service providers such as NavInfo, AutoNavi, and Careland also began to accelerate layout in telematics with map as the point of focus.

Certain projections claim that the penetration of OEM telematics will increase before the end of 2016. The model of OEM-led platform and third-party telematics enterprises providing services will continue to see adoption. The two groups are set to provide more mature products and services to car owners. Meanwhile, the passenger vehicle market will most probably not see the robust growth witnessed in the near past, which in turn would push OEMs to rapidly lift OEM telematics pre-installations to compete for the market.

The alternatives for car owners will witness diversification on account of the provision of aftermarket like intelligent rear-view mirror that also offers networking and recreational functions.

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