Car networking loss making yell, still in the concept stage of speculation

Today is "World Telecom Day", the theme is related to car networking. However, the current car networking enterprises mostly lose money to make a yell, many launched the new car networking technology companies did not profit, the vast majority of owners are not willing to pay for the car network, this metaphor of the current Chinese development Car network confusion.

Car Networking

"On the road in 2030, no lights, cars at high speed, no jam on the road, no accidents ..." the perfect driving life that was painted on the Shanghai World Expo Car Pavilion is controlled by an invisible and powerful network that is connected to the car. "

Today is the annual "World World Telecommunication and Information Society Day" ("Telecommunication Day"), with the theme "Information and communication technology and improved road safety" linked to vehicle networking.

The industry generally predicts that after computers and mobile phones, cars could become a new medium for Internet applications. According to the relevant departments estimated that by 2015 China's car network users will reach 40 million, the next 5 years of networked industry output value, is expected to exceed 100 billion yuan-car networking or will become a "super blue sea."

There are plenty of car parts and auto makers in the network of layout cars, and no one wants to miss the market. "There are platform operators, network operators, vehicle companies and so on, because the car networking market is accelerating, and in five years will be the formation of hundreds of billions of dollars in the market." "Zhao, general manager of the platform operator, said in an interview with the" Evening News ".

At present, the vehicle networking technology is in the telematics (vehicle information services) mainly in the initial stage, mainly providing navigation, emergency rescue, vehicle tracking services, the United States mainly security, Europe to navigation, mainly in Japan to dynamic traffic information. SAIC, FAW, Guangzhou, Geely and other bus companies with telecom operators to sign the strategic cooperation Agreement, in the car before the factory, trying to seize the commanding heights of vehicle networking platform.

However, the brutal reality is that many of the new car networking technology companies have not been profitable, most of the company's profits from the traditional car navigation business. The vast majority of car owners are unwilling to pay for the internet, which metaphors the confusion of China's development of the car network.

"It's good to listen to music online while driving, even to send Twitter, but I wouldn't be happy if I added extra expenses," he said. "There is a response from the owner," What is the difference between a car network and a smartphone? Now smartphones can also be used to navigate, find nearby services, and perhaps replace them. ”

Zhao that the network can do a lot of mobile phones do not do, the most direct embodiment of the car itself is the "communication." In 2009, he said, the industry was called the first year of car networking, and for more than 3 years, car networking already had the just-needed features and services that smartphones could not replace. If the mobile phone does not have a sensor machine, car navigation can be with the original car sensors for digital exchange, such as security warning, collision warning, such as security features services.

In Zhao's view, the barrier to market development is not technology, but the current can not find a reasonable, sustainable development and profitability of the business model.

"Owners of the original thinking is willing to pay for the hardware, not for the intangible software Services to pay, we have to do is to integrate those owners can see the touch of the car networking services and hardware combined to enhance the bargaining space for hardware products." "Zhao said.

In addition, a car network industry personage said, there are two mountains across the network in front of the car, "including telecommunications network operators too high traffic costs and the lack of standardization of vehicle networking technology, leading to the difficulties of network development, the current domestic passenger cars about 3% equipped with the car network." ”

In fact, the car network started from around 2009, the traditional profit model has been unprofitable, now hardware, software, technology platform providers in the transition period. With the increase of users, some of the original hardware manufacturers, software providers, also began to transform services, the provision of services is generally considered to generate a sustainable profit model.

However, the business model is relatively extensive, in order to compete for market resources, some enterprises even give free car navigation, only to sign a certain period of the car Network service consumption agreement.

Chase Securities analyst Xu Peng Analysis, said, "Car networking has a bright future, although tempting, but according to the current research and development capabilities, car networking related equipment procurement really large area to spread out at least six or seven years, therefore, is still a pure concept of speculation." ”