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Understanding the Automotive Market Dynamics in China
‘Tapping $5.5 Billion Infotainment & Telematics Opportunities by 2017
Boston, MA - September 28, 2010 – The growing middle-class in China will drive future automotive sector market opportunities, however, this market is highly dynamic and complicated, according to the Strategy Analytics report, “China Infotainment & Telematics Market Drivers.”
The report highlights how some established OEMs and tier suppliers outside of China have attempted to paint China in broad brush strokes, while other companies have embraced cultural diversity, which leads to better understanding of market segmentation and improves competitive edge in this booming market. While it is impossible to reduce the automotive opportunity to a simple snap-shot, this Strategy Analytics report highlights key issues for all members of the supply chain.
“China is a vibrant market, even though domestic consumer demand is currently skewed toward low-cost vehicles and vehicle solutions. However, since domestic demand for higher specification entertainment and telematics systems is growing rapidly, the export market is ready to takeoff,” noted Richard Robinson, Director of the Strategy Analytics Automotive Multimedia and Communications Practice.
John Canali, Analyst with Strategy Analytics, adds, "Vehicle OEMs must recognize the great diversity of a billion Chinese consumers coming from varying markets. Each distinct infotainment feature influences consumer demand.” Canali continues, “It is important for external OEMs and tier suppliers to get to know the many different pictures of China, and to use them as strategic signposts for identifying their own value-add.”
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