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Business / Auto China

Connectivity helping to drive up demand for new autos in China

By Li Fangfang (China Daily) Updated: 2014-06-01 07:28

Connectivity helping to drive up demand for new autos in China

A dashboard system with 4G mobile Internet connectivity is seen in a Chevrolet Impala. It is predicted that by 2020, all new vehicles will be equipped with connectivity technology. [Daniel Acker / Bloomberg]

Automobiles and the Internet are two revolutionary inventions to greatly change people's lives and promote society's development over the past century.

Now, connectivity, also known as the Internet of vehicles, will reshape lives anew, and perhaps even more significantly.

Statistics from information provider EnfoDesk showed that in 2013, China's vehicle connectivity technology users increased by 10 times from the 50,000 they numbered in 2005. It predicted the population of technology adopters will reach 10 million by 2015, accounting for about 10 percent of drivers in the country, and 20 percent in 2020, with market revenue of more than 50 billion yuan ($8 billion).

EnfoDesk expects the output value of vehicle connectivity in China could catch up with that of mobile Internet by 2017 or 2018.

The Global System for Mobile Communications Association forecast that by 2020, all new vehicles will be equipped with some type of connectivity technology.

Li Zhaorong, a researcher dedicated to vehicle connectivity, said the sector is getting more lucrative in China, as numbers grow for both mobility and the mobile Internet.

"The more discerning requirements of consumers, along with the more complicated modern transportation and road conditions, the increasing awareness of safety and the booming number of vehicles all raise the demand for vehicle connectivity technologies," Li said.

According to a survey conducted by consulting firm Accenture in 12 countries with huge numbers of vehicles, including China, the United States, Italy and Brazil, connectivity has more than doubled the impact of vehicle performance on consumers' purchase decisions.

About 39 percent of 14,000 respondents said that connectivity was a major consideration in choosing a car, while only 14 percent said driving performance was the main thing they cared about.

The survey also found that Chinese drivers exhibited the strongest interest in connectivity technologies, other than powertrain, among 12 countries.

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