Car networking: growth has trouble

Car networking is becoming a chip giant "digging gold," the new battlefield. And with their high enthusiasm against the background of China's car networking market, "applauded" the cold reality. However, this may only be the "growth troubles" of the car networking.

Hot and cold encounter

2014 CES (US Consumer Electronics Show) turned auto show, the world's nine car prices gathered for the first time exhibitors, smart cars focus on appearance. Car-smart terminal competition, Apple jointly launched 12 car prices "iOSin the Car" alliance; Google United, GM, Honda, Audi, Hyundai, Mercedes-Benz and so set up the "Open Automotive Alliance OAA", pushing the car Android; Microsoft and Ford then Introduced SYNC system, 4G chip supplier Nvidia, Qualcomm, Intel quickly follow up ......

Intel introduced the IVI system, hoping to regain the glory of the PC era in the field of car networking; Qualcomm also released a networking car chip 602A this year, wanting to build an integrated platform for networking car solutions.

"The key is to use the Internet of Vehicles to access the Internet, whether through industry standards or through mandatory regulations." Ding Xun, a senior industry researcher with China Mobile Research Institute, told First Financial Daily reporter that as with smartphones, only connected vehicles are valuable, Networking car chips come in handy.

BYD Auto Electronics Division, Planning Division Xie Pingsheng told this reporter, BYD's car networking products, led by Huawei, ZTE supplemented by the rapid replacement of products, 3G, 4G in the iteration.

However, the car prices have encountered embarrassing reality. "The car network has been very hot, but the acclaim, the user's consumer level and awareness have not kept pace." Xie Bingsheng said.

"Continued downturn in rates. Spend money to buy car information service, the user does not buy it. Most of the car networking companies 'lose money earned.'" Changan Automobile Group Technology and Management Information Technology Kong Fanzhong also lamented. "I do not know what consumers will buy, navigation and positioning, information services, entertainment services, voice services, Internet services, management and monitoring or terminal applications?

At present, the domestic car network to telematics (car computer system) services, serious homogeneity, uneven technical level, low-end vehicle terminal products flooding the market, into low-cost low-quality competition.

Kong Fanzhong believes that this profit model is not sustainable, the market easily fall into the OEM do not want to pay, operators can not be free, users do not want to renew the vicious cycle.

Ideal and Prospect

Into the 4G communications, car networking into the era of ultra-wideband. The industry generally put the new car all networked and automatic driving time point set in 2020.

Yang Jing, chief scientist of China Mobile, pointed out that the car networking has shifted from the traditional embedded system to the open APP platform on the one hand, and the V2X (cars and cars, roads, pedestrians, Mobile Internet, etc.) vehicle communication capabilities. "The car network has entered a new phase of improving traffic safety in the near field."

In other words, the car through the network, automatically aware of the nearby people, cars, roads and other conditions, promptly remind and adjust the driving status of the car to reduce traffic accidents.

According to Yang Jing introduction, the United States Department of Transportation will be introduced in 2014 V2V mandatory installation of light vehicles. V2V will become a vehicle communication platform. This platform will mainly support alarm applications in the short term and will further integrate with the auto-driving function to achieve the purpose of safety control of vehicles. In order to encourage the active participation of auto companies, the U.S. Department of Transportation intends to establish an assessment system of safety capabilities brought by V2V technology and add it to the five-star collision detection standard.

In contrast, China's car network also lacks the overall policy and industry standards, communications, automotive, transportation and other related businesses go its own course. Moreover, the accumulation of technology companies lack of cars, only a small number of car prices launched Telematics configuration products, V2X technology no time to take into account.

Kong Fanzhong suggested that automakers should be open-minded and enjoy the mobile Internet technology achievements of operating system vendors Google, Apple, Microsoft, 3G and 4G LTE chip suppliers Qualcomm, Intel, Nvidia and telecom operator AT & T; to concentrate on developing the car itself Technologies such as smart driving technology for cars, car safety and energy saving technologies based on car networking V2X.

From the profit model, the introduction of Internet thinking. Kong Fanzhong said that the promotion period free to establish user base. With enough user base, then data mining, innovative application development, to create real value to users - security, fuel economy and environmental protection. After the establishment of customer stickiness, according to service try layered charges.

At CES 2014, Gartner said that in the future, perhaps one day, car sales will be discounted based on when car-networking services are purchased, and subscribers may receive a free car if they sign up for a lifetime car-sharing service plan. The survey found that 38% of respondents are very interested.

The day when cars arrive at dinner (service and performance improvements), there will not only be "contract phones" but also "contract cars," just as smartphones rely on telecoms networks and the continued profitability of car networking that underpins smart cars will change For the reality.