Automotive electronics to benefit from increased quality in Chinese car makers

BOSTON, USA: At the 2010 Auto China show in Beijing, Strategy Analytics saw much improvement in new models on display. The Strategy Analytics Insight, “Chinese OEMs: Rapid Advance in Quality Bodes Well For Automotive Electronics,” reports on the improvements made by Chinese car makers.

Strategy Analytics sees increased demand for automotive electronics in the Chinese market from:

* Increased penetration in new electronic systems models for each vehicle;
* Improvements made to structural safety and exterior design;
* Comfort and convenience features;
* Safety systems – a key decider for Chinese car purchasers; and
* Other systems, such as infotainment.

“The emergence of more discerning consumers and the growth in technical centers of established global vendors working with Chinese OEMs on new product development are encouraging improvement,” said the author of this Insight, Kevin Mak, Industry Analyst of the Strategy Analytics Automotive Electronics Service.

The pace of product improvement has quickened as global OEMs ramp up their operations, importing flagship models while looking for new sales from the inland and rural markets. A greater use of platform-based model development has enabled the Chinese players to maintain their cost advantage in these markets, while adding features and entering the higher model segments in the highly competitive markets of the major cities.

Some Chinese vendors are using the Australian market as their first steps in exporting cars to mature markets. Furthermore, unit car sales growth will not be as rapid this year as it was during 2009. Chinese OEMs will now emphasize quality and maximizing sales value per unit sold.

Corresponding Strategy Analytics research also looked at Chinese powertrain developments and the new Android-based infotainment system, InkaNet, which was deployed on the new Roewe 350 compact sedan.