Boston, MA - August 16, 2006 - Strategy Analytics' latest study, "China Automotive Infotainment Market," forecasts that the high growth Chinese domestic market for vehicle entertainment and navigation systems will be worth at least $4 Billion by 2013, and shows that the market opportunity will be dominated for some time by vehicle OEM business, and that the domestic Aftermarket will not become significant until 2007 and onwards. Additionally, there are significant cost reduction opportunities for any international infotainment system vendor willing to invest locally, but that Japanese vendors are leading this charge.

"For international automotive infotainment system suppliers, China offers opportunities to reduce component and system production costs, to increase access to international/Chinese vehicle OEM joint ventures, and to respond to the growing domestic Chinese OE market, " says Joanne Blight, Director of the Strategy Analytics Automotive Multimedia and Communications Service.

This analysis also highlights that although the aftermarket for car parts and infotainment accessories is currently small in China, a major increase in demand for in-car infotainment products is expected from 2007 onwards. In addition, it recommends that other international automotive infotainment system suppliers should examine the cost benefits of taking the approach of a number of Japanese automotive infotainment system companies operating in the Chinese market, including Clarion, Pioneer, Kenwood and Panasonic.