According to IHS ’latest automotive research report, China has become the world ’s largest automotive market since 2009, and is now expected to become the largest market for embedded telematics systems produced by OEMs. The country ’s sales of such systems are expected to grow by seven in 2012-2019 More than times.
In 2019, sales of telematics systems embedded in automotive OEMs in the Chinese market will increase from 1.1 million in 2012 to more than 9.5 million, as shown in Figure 6. Shipments will exceed 1.8 million this year, increase to 2.7 million in 2014, and increase to 3.8 million and 5.1 million in 2015 and 2016 respectively.
Figure 6: Sales volume of Chinese OEM embedded telematics system (in thousands)
IHS believes that from 2013 to 2015, at least 12 OEMs in China will add telematics systems to cars. These will be mainly embedded devices, considering the amazing sales of GM OnStar, and other car manufacturers taking similar actions in China, such systems will start very strongly in China.
Domestic car manufacturers take the lead
With the exception of Honda, all the best-selling car manufacturers in China are very active in providing telematics systems. However, domestic OEMs are at the forefront of deployment of telematics systems in China, and many manufacturers have already launched various services or plan to launch related services soon.
Foreign auto makers are more cautious, worrying that the timing of the launch of related services in China is not yet mature. It has been two years since BMW, Mercedes-Benz, Peugeot and Ford have provided local versions of connected infotainment systems, but it was not until April 2012 that they fully launched such services.
Unique telematics market
China's telematics services have great potential. But to succeed in a unique market like China, a global infotainment platform must find ways to adapt to the country ’s rich culture and all nuances, and use appropriate languages, maps, and connections to make it work.
Localizing the HMI in Chinese and finding a suitable local map partner is a big problem, not to mention finding a local partner who can provide a full set of mobile applications. IHS believes that these problems have caused OEMs to generally postpone the launch of their related services in China, especially foreign automakers have waited so long to launch telematics services in China.
But the situation may have changed in the 2012 Beijing Summer Auto Show, when many car manufacturers launched services at this show. This implies that auto manufacturers may finally be able to start to understand the dynamics of the Chinese market and Chinese consumers in terms of telematics and in-vehicle infotainment.
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