Tired market, car navigation crisis

Recently released the latest report of the Chinese automotive electronics market, the report shows: In the next five years, China's car GPS navigation market will continue to maintain a rapid growth trend, the average annual market growth rate of about 25%, is expected to 2012, China's car GPS navigation market will be It has reached nearly 200 billion yuan. In this high-speed development, China's car GPS navigation market is facing a crisis.

According to the 2010 China auto sales data released by the Automobile Industry Association, the annual sales volume was 18.06 million, and it continued to sit at the top spot in the world with an increase of 32.37% year-on-year. The output was 18,264,700 units, a year-on-year increase of 32.44%. Compared with other countries in the world, China is far ahead of both the absolute value and the growth rate of car sales. While the rapid development of China's auto market and the continuous increase in auto sales, the other end of the Chinese auto industry, the car GPS navigation market is also booming.

I. Personal consumption, led by low-end consumer

As the level of people's consumption is increasing, consumer demand for car audio is getting higher and higher. Consumers have begun to shift their perception of car consumption from rationality to rationality. There have been several blowout developments in the automotive audio market from the embryonic stage of the market to the market demand. At the stage, the consumption trend of the CD deck upgrades, and instead began to pursue purely audio-enjoying CD products to enjoy audiovisual, navigation, and other multimedia enjoyment products “upgrade” consumption.

Vehicle navigation audio and video products that were once considered to be high-end configurations are now becoming mainstream products on the market. Car audio products continue to cater to the tastes of a considerable portion of consumers due to their special sound quality effects, while once popular VCD products are Neither the visual nor the auditory effects are comparable to the first two, and gradually fade out of the market. Compared with CD products, MD products have powerful editing functions and can meet individualized demands. However, the prices are relatively high. As an on-board system, this advantage is not obvious, and thus it has failed to replace CDs into the mainstream.

At present, domestic consumers' acceptance of car navigation audio and video systems has remained at the low-end level. The acceptable mainstream price for car navigation audio-visual products is between RMB 2000-5000. 46% of consumers choose this price product. In addition, due to economic conditions, 26% of owners choose the price below RMB 2,000. Low-end products. The price between 5000-10000 yuan products only accounted for 24% of the total market, while only 4% of audio enthusiasts and high-spending consumers have the ability to purchase more than 10,000 yuan of car navigation audio and video products.

Therefore, in the current domestic car GPS navigation market, consumers not only convert simple entertainment consumption into diversified and individualized rational consumption, but also have three levels of high, medium and low consumption in the car GPS navigation market. The consumer market has become the dominant market.

Second, homogeneity is serious and the overall market is extremely tired

Post-installed products such as in-vehicle entertainment and navigation information systems and body electronics, which have little relevance to vehicle safety and control, have risen rapidly in China in the past year or two, although there are many companies engaged in the development and production of automotive aftermarket products in China. However, most of these companies are very small in scale. Because they haven't acquired the core technology for a long time, their R&D scale can't keep up. The products are mostly low-end products with low technical content, and homogeneity is very serious. In addition, with the increasingly fierce competition, enterprises can only take the method of lowering prices to attack the city pool, and spare no effort to make large-scale capital investment in the technological development of products. In addition, although some home appliance companies try to enter this market through the involvement of the program companies, the requirements of the automotive electronics industry and home use are completely two concepts. There is no certain technology accumulation and accumulation that can't be done well.

In the aftermarket of car GPS navigation, the brand and quality of domestic manufacturers often can not get the trust of the owner. For example, in the refitting market, in order to improve the on-board sound effects, the original deck analog signal was converted into a digital signal for the owner of the car. When choosing a brand, most of them had previously turned their sights on foreign brands. However, due to price reasons, there are more and more owners choose domestic brands. But at present, the entire rear-mounted GPS navigation market has faced homogenization of products, similar services, chaotic channels, and poor service attitude. One or two or three lines of brand disputes, chaos of the brand, and the company’s plan to please hardware vendors have become the current post-installment. The main performance of the market, the entire booming development scene has become tired in the same serious state of the industry.

Third, the fight between the heroes and the market

As the industry with the most growth in China in the next 10 years, the rapid development of the automotive industry has brought new opportunities for development in the domestic automobile aftermarket. It is understood that the total sales of onboard AV equipment such as car GPS navigation have broken through. 20 billion yuan mark. Taking the navigation system as an example, in addition to the increasing number of private cars, millions of trucks and buses also have to install navigation systems, and their potential market prospects are also very wide.

Related reports show that after the 2008 downturn, China's overall GPS market began to pick up in the second half of 2009. In 2010, the Chinese GPS market developed rapidly under the impetus of market promotion, technology development and application innovation. The annual GPS market capacity reached 9.083 million sets, an increase of 117.8% year-on-year. Among them, car GPS sales reached 3.427 million sets, an increase of 102.2% compared with 2009.

It is the huge development prospects of the car navigation market after the car navigation for many investors phase, this piece of cake is more and more food eater. It is understood that since 2005, manufacturers of large and small domestic manufacturing and sales of GPS navigation products have been increasing year by year. By 2010, there are more than 232 manufacturers of GPS navigation products manufactured and sold, and there are many good helpers and Hangsheng There are more than 20 large-scale manufacturers such as Huayang, Feiyang, Tiange, and Ouhua.

With the initiative of car audio and video navigation manufacturers and the pursuit of audio and video navigation quality and personalized needs of car owners, domestic car audio and video navigation market continues to appear "building shop hot", "promotional hot" and "price war" and other crazes. Manufacturers have used their own set of sales techniques and channels to gain market share. After the domestic car GPS navigation market competition has been surging, the car GPS navigation market has entered a era of race.

Fourth, foreign invasion, international giants take advantage

With the rapid growth of China's auto vehicles, the auto parts industry has also achieved rapid development. The huge cake in the Chinese market has attracted almost all internationally renowned auto parts brands. In particular, in recent years, international well-known brand names have been soaring in China’s auto parts market with their international brands, especially in China. The car audio supporting market has formed a strong impact, and domestic auto parts have been in a passive situation in the market before and after the development.

According to relevant statistics, there are currently nearly 500 foreign-invested parts and components companies in China, and multinational suppliers including Visteon, BorgWarner, Delphi, and other world top 500 parts and components companies are established without exception in China. A joint venture or sole proprietorship, 60% of the global automotive electronics products are produced in China.

So far, Japanese brands have the largest market share in China, as high as 50%. The main products are main players and speakers. These Japanese brands are mainly Sony, Panasonic, Sanyo, Kenwood, JVC, Pioneer, Clarion, and Alpine. Famous European and American brands such as Philips, SiemensVDO, KICKER, Laifu, and the Great Earthquake, etc., have a market share of over 10% in China. Domestic brands add up to less than 40% of the market.

V. New Territories, Continual Growth in Front Assemblies

With the rapid development of China's automobile industry and the continuous popularization of private cars, the car navigation system has gradually been recognized by people, but its huge market potential has attracted wide attention from all parties. In 2003, Toyota equipped the front-loading car navigation system for the first time on the Vios, which was regarded as the beginning of the domestic car-mounted navigation system. After many years of development and popularization of the aftermarket, domestic automotive assembly kits have been effectively developed. According to the survey data, the number of models equipped with front-loading car navigation systems introduced in 2005 reached 24, which was far higher than the 7 models in 2004. In 2006, the momentum of development in 2005 was continued, and before 2006 and 2007, the year's allocation was released. The car navigation system is equipped with 38 models and 42 models respectively. In particular, in 08 and 09, the number of models equipped with front-loading car navigation systems increased rapidly, and the assembly rate of all models exhibited at the 2010 Beijing International Auto Show had reached more than 80%, and the car navigation system was being assembled. In the technology, inorganic core digital navigation systems and 3G dynamic navigation systems have emerged.

Pre-installation of GPS in automobiles is constrained by the changes in the automotive consumer market. The main appeal is to mid- to high-end models, and the market has therefore maintained a steady growth. In the pre-installed market, imported brands accounted for more than 80% of the pre-installed market, and the rest were mostly domestic high-end models and models with more than 150,000 yuan. As the pre-installed GPS market enters a high threshold, foreign brands have obvious advantages. In 2010, the sales volume of the front-end navigation system was 425,000 units, an increase of 15.2% year-on-year. According to the above data analysis, China’s navigation system has increased in front-loading configuration year after year. It can be seen that the attention of DVDs and navigation configurations has increased significantly in various models of cars, and DVD and navigation configurations have become more popular in cars as the grade of cars has increased. With the increase, car navigation system configuration has become a consumer trend.

Six, Zhiling technology, car networking to open up new areas

After several years of rapid development, China has become one of the world’s largest automotive producers. As the Chinese auto market continues to heat up, automotive-related services have also emerged. It is in this context that the introduction of car-connected services to the Chinese automobile market has already begun to become an important part of China's strategy for many OEMs.

The development of China's Telematics service (ie, car networking service) is actually a rising star compared to foreign countries. Since March 25, 2009, Lexus' third-generation RX350 equipped with a G-Book system officially landed on the Chinese market, signifying that it is dominated by car manufacturers. The Telematics service was officially commercialized in China. However, China's Telematics service has its own development characteristics.

In front of the car assembly market, in May 2009, GAC Toyota Camry 240VG-Book version listed. In September 2009, Toyota further expanded the G-Book's installation ratio on the Lexus series to achieve coverage of ES, GS, LS and GX models. In December 2009, Shanghai GM officially launched a Telematics service called OnStar. The equipment includes Cadillac, New Regal, and New LaCrosse. Breaking the domestic Telematics market, G-Book has a unique situation. In the same period, FAW Toyota's new crown was officially launched, and four models were equipped with G-Book service. At this point, in 2009, as the first year of the Chinese Telematics market, it has left a deep impression on the history of automobile development in China.

In 2010, the independent brand manufacturers took over the baton. In April of the same year, SAIC Roewe 350 went public and was equipped with a Telematics system. FAW D-Partner, Changan Auto Incall Geely GNetLink, Chery NetCar and other automakers of their own brands have started to implement the car networking services.

In the post-installation channel sales market, it is also gestating with the effective development of the front assembly kit. In December 2009, E-CAR Intelligent Vehicle Information Platform released by Guangdong Good Helper Electronic Technology Co., Ltd. was like a spring thunder. It officially opened the Telematics service (ie, a car networking service) in the domestic automobile aftermarket, and each car navigation system Hardware manufacturers have released their own Telematics services (ie, car networking services) products such as Lu Chang iBook, Soling G-CAR, Intercity T-CAR, Car Audio Network, SEG, and so on.

In addition, the integration and layout of the three major telecom operators in terms of technology platform and resource integration, respectively, combined with depots to promote the formation of models. Really a jubilant ocean, where are the images of the first year of 2009 Telematics and giants? And the light reflected by this heat wave is a new battlefield in the new field? It is indeed worth thinking and waiting for confirmation.