Business / Auto China

'Connected car' rewiring consumer demand

By Li Fangfang (China Daily) Updated: 2014-10-20 07:30

Growth opportunities

He said the range of features is opening up growth opportunities for automakers and third-party service providers.

"Nowhere offers such big opportunity as in China. There is momentum for carmakers to capitalize on consumers who are leading the digital effort, and as the data shows, eager to be connected."

To take advantage of the opportunities, Gardiner suggested automakers first understand which aspects of telematics are most valued by consumers.

"It's a misconception that what people want out of connected cars is entertainment. The top 10 Chinese consumer needs when it comes to this aspect are features that enable safer and easier driving experiences," said Gardiner.

The top three on the list include a rearview camera, online navigation system and Bluetooth speakerphone. The need for entertainment doesn't make the list until the 11th position with a DVD system.

"We found that many features are standard but some are unmet and provide an opportunity for someone to differentiate by entering the market with this offering," said Gardiner.

He said the top opportunity that isn't yet adequately satisfied is a smartphone connection, which was No 4 overall on respondent list.

More than half of the people showed a strong desire to have a smartphone capability in their cars, a desire not matched by the supply of existing car designs in China, the largest smartphone user in the world.

"Chinese consumers want this feature because it enables safer and easier driving experiences through things like easier GPS and driver-oriented design to ensure safety," said Gardiner.

Communication and information searches are also compelling features of smartphones, he added. Car owners are looking for a hotspot connection with 3G Wi-Fi in the vehicle, a connection with telematics, and remote start of the car through their smart phones.

The connected car concept was first introduced in General Motors' OnStar systems in 1996, which allowed drivers to communicate with the vehicle and other devices inside and outside the car. Entered China in 2009, OnStar now has more than 780,000 local users.